Landbanking Scams-Old product in a new package…
For readers new to this term of ‘landbanking’, it is often described and termed as a ‘great investment opportunity’.
A small plot of farmland is offered for sale which is projected to result in huge profits. Small plots of agricultural land is advertised on the internet or telephone as a ‘great investment opportunity’. Promotions are also conducted by organizing outlets at a exhibition or fair. The land is located in areas where house prices are higher than normal. Unsuspecting investors are informed that once planning permission is granted the plot of land will be purchased by any developer at a much higher price.
The hard reality however differs greatly from the projected fact. The land may be located in an area which is geologically unsuitable or may even be a flood risk area. The end result is that the piece of land ends up being neglected and the funds invested locked for an indefinite period of time.
Some of the tips which can help in avoiding such landbanking scams are:
Proper research of the company offering such an investment opportunity, should be undertaken.
Cross-checking with district and state authorities as well as land development authorities.
State and district laws imply that landbanking schemes need to be authorized.
Check with the landbanking company to provide details of people who have already invested in their scheme. Discussing what precautionary steps those investors have taken prior to investment, will help in determining the authenticity.
Such landbanking schemes and scams are advertised through email, over the telephone and through text messaging. Complete inquiry even before replying to any such advertisements will be wise decision.
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