Renewable energy is an industry on the up.
Discovering land for potential development could offer an investor an edge, as well as a good profit.
A wind farm that uses wind-driven turbines to produce electricity, or solar cells that require a large land mass to produce solar energy; both potential land uses. These industries require large land masses and those holding the land deeds can often demand prices above the existing property value.
Commercial land is more valuable than residential property. When the opportunity arises to purchase land that may have been for agricultural use could potentially turn into a windfall if required for renewable energy companies.
Farm land owners can allow others to use the land for agricultural purposes, thus creating an income stream on the property until such time that a developer requires the land for an industrial expansion. There may be some issue over land use, and if the property is denied for industrial or commercial use, it is still worth the price for agricultural use.
However, as more communities seek ways to add income through land taxation, they are becoming more willing to allow land use changes, especially when, in addition to bringing in more taxes, the new land owner is helping the environment.
Care must be exercised as land that may have previously been used for industrial purposes may have contaminants in the ground that lessen the value. These contaminants will need to be removed, and the land returned to its natural state, before the investor can realise a good return on their land investment.
Speak to the experts
Our experts at Compare The Financial Markets deal with many alternative investment companies directly and can find the best possible price on land.