Why First-Time Investors and Homeowners Are Snapping Up Small Land Parcels at Auction

As a first-time property investor, you may not consider grassy verges or small land plots attractive opportunities, but recently, in Medway, Kent, auction sales have proved otherwise. These overlooked pieces of land, often without planning permission, are sold for thousands of pounds – and savvy investors are noticing.

Andrew Binstock, an expert auctioneer and director of Auction House London, recently explained why these land parcels appeal to both seasoned and first-time investors. While they may seem unremarkable at first glance, the potential for long-term gains makes them worth considering.

Why Buy Land Without Planning Permission?

For new investors, land with planning permission can seem safe. Many are drawn to the lower upfront costs and the possibility of future development. As planning laws evolve and demand for housing grows, these parcels could appreciate significantly over time. Investors often adopt a “land banking” strategy, where they buy land now and wait for the right time to seek development opportunities.

Alternatively, small plots can be sold or rented out in creative ways. Advertisers often lease land for promotional purposes, such as installing billboards in high-traffic areas. Some investors even “chop” the land into smaller pieces to sell to homeowners looking to expand their gardens.

In a recent auction, multiple plots were sold for well above their guide prices. One lot in Rainham’s Kenilworth Gardens sold for £10,000. While residents were initially concerned about potential development, the new owner may offer sections of the land to neighbouring homeowners, allowing them to extend their gardens. This approach benefits the landowner and adds value to the homeowners’ properties.

Other lots in Chatham and Lordswood Lane sold for between £4,500 and £20,000, showing that these plots are seen as valuable assets even without immediate development potential.

Key Takeaways for First-Time Investors

• Affordable Entry Point: Buying land without planning permission can be a cost-effective way to enter the property market. While the land may not be immediately developable, it holds the potential for long-term gains.
• Creative Uses: Even if development isn’t possible, land can be rented out for advertising or sold in smaller parcels to homeowners.
• Patience Pays Off: Investing in land is often a long-term strategy. By holding onto a plot until planning laws or market conditions change, investors could see significant returns in the future.

As Andrew Binstock points out, buying these “land off-cuts” may seem unconventional, but it’s a growing trend. This could be the ideal way for first-time investors to enter the property market, offering a blank canvas for future opportunities.

If you’re looking to explore investment opportunities in land or other properties, keep an eye on upcoming auctions – you never know where your next hidden gem might be!

https://www.kentonline.co.uk/medway/news/mystery-behind-mass-sale-of-grass-plots-revealed-312494/