Investing is the process of managing money in assets, businesses, or financial schemes with the goal of earning a return on the capital invested. One could argue that obtaining financial independence and stability without investing is impossible

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One of the investment options with comparatively low risk and great return potential is land banking.

One of the earliest real estate investment strategies is land banking, in which investors purchase little or large amounts of undeveloped land with the goal of making money through the land’s subsequent sale. In other words, investors look for land in underdeveloped districts and bank it until significant population expansion or infrastructure development occurs in the region, at which point they sell the land for a higher price or develop it to satisfy the rising demand for a new location.

Due to the land’s increasing value, investors can profit greatly. Certain government initiatives or regulations may result in rezoning, rapid infrastructure development, municipal growth, and industrialization—all of which are stimulants of rising demand and value appreciation.

Land banking schemes typically require relatively little initial capital, in contrast to the common belief that real estate demands a significant starting capital. Starting on a tight budget won’t prevent you from making a healthy return on your initial investment.