Who Is Land Banking

April 9, 2015

Property Investing

landLand bought by Housing NZ in 2004 was earmarked for a massive housing development that included social housing and low cost homes. Plans came out in 2012 and it was set to be a massive undertaking of 500 + homes. Recent news that some some of the land was being sold off at market value raised a few questions and eyebrows.

The 24 hectare site has jumped in value from $10.7 million when Housing NZ bought it in 2004 to it’s current value of $23.4 million. So selling some of it off at market value makes sense. While there is profit to be made from selling the land now the real intention is to get some development underway as soon as possible and from that initiative eventually up to 600 homes will occur the land.

It’s hard to know if that will spur actual development as there’s no guarantee the new owner will develop it or hold on to it. The current RMA resource consent is not a quick nor cheap undertaking and there’s still the value increase incentive for holding onto the land in much the same way Housing NZ have done for ten years.

Sooner or later these land parcels have to be built on and the Government is working on partnering with the industry to tie in their HomeStart programme which should create the incentive developers need.

In the meantime PropertyTutors mentoring clients are releasing on to the property market affordable homes that have been renovated. These homes were in a bad state many unliveable when they were purchased. Sean Wood and Steve Goodey have now mentored hundreds of property investors who regularly trade and make a tidy profit in the process. To find out more go to The Masters.

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