Build your wealth, without buildings. We connect visionary investors with the funding to acquire vacant land for capital growth or future developments.
Buying vacant land to hold can net big profits in the long run. If you’ve identified a site you think has potential regardless of its size and features, we can connect you with private lenders who finance land banking to acquire your asset.
Land is a stable asset class with a track record for steady gains. Factors like population growth, major infrastructure projects, and changes to zoning, can trigger dramatic increases in property values almost overnight.
The relatively low operating costs of holding vacant vs developed land makes it manageable to keep the land while securing approvals and subdivisions, planning construction projects, or waiting to offload when prices go up.
Land banking can be speculative, but the risk is offset by the potential for huge rewards. When informed by strategy, expertise, and a solid business plan, it’s possible to buy tomorrow’s prime location at today’s discount price.
Land banking is well suited to private finance, and Northcap has one of Australia’s largest networks of non-bank lenders. If you aren’t making headway with conventional funding options, we can open up a world of new possibilities.
Getting the tick of approval on finance for vacant land – residential, industrial or rural – requires careful planning and execution during the application phase. We’ll help you with documentation and how to best present your plans.
Land banking is a niche enterprise. We don’t waste time shopping proposals to unlikely backers. Once we have a read on your proposed plot and master plan, our brokers will approach a shortlist of likely lenders for a fast, effective outcome.
The relatively lower operating costs of holding vacant vs developed land makes it manageable to keep the land while securing approvals and subdivisions, planning construction projects, or waiting to offload when prices go up.
Purchasing vacant residential land with the plan of developing it down the line is a lower risk land banking option. During the holding period, you can enhance the asset’s yield potential by securing subdivisions, or even applying for upgrades to the residential zoning class that allow for higher density developments.
Our tailored financing options can help. Talk to one of our team today about how we can bring you closer to banking that block.
Land banking – buying undeveloped (“greenfield”) sites for capital growth or future development – is an attractive investment strategy for many Australian property developers. Large development companies often stockpile vacant land in a land bank for future builds. During the holding period, the banked land can be rezoned, have infrastructure like roads and sewerage added, then subdivided (pending approvals) and sold off as separate lots.
On the flip side, individual developers and smaller outfits might buy run-down houses in good locations, using available rental income to offset holding costs while they obtain property development approval. Alternatively, you can acquire land not zoned as residential – like farmland, or industrial sites on the outskirts of a city – in the hope it’s rezoned in future.
Land use zoning is controlled by local councils, which release strategic plans outlining areas set to be rezoned (although these plans can end up just gathering dust).
Developers can apply for rezoning with the local council. This process is complex, entailing in-depth planning, assessment, community consultation, and more, with the ultimate decision made by the relevant municipality.
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