Why you should buy a plot of land for your children instead of opening bank account ?
• Your children will be able to get loans from the bank base on the value of the plot of land.
• It’s something tangible, unlike money in the bank which can be withdrawn anytime.
• The value of property appreciates with time.
• The increase in the population leads to the increase in demand for housing and other amenities.
• You can build a house on it and rent it out.
• If your child decides to sell it, he or she will get more money than you paid for it at the time of purchase.
In this article, let me tell you why you should buy a plot of land for your children instead of opening bank account for them.
I will show you some real life examples to explain why it is better to give land to your children rather than banks.
The benefits of land ownership for your children is enormous. You can buy a plot of land for your children for as low as N600,000 and sell it for minimum of N3m in the next 4 years.
Some banks have been encouraging parents to open accounts for their children instead of buying land/houses but I think this is a big mistake!
Why should you buy a plot of land now?
1.The price of land keeps increasing every year
2.Land appreciates more than bank interests
3.Land will always appreciate even if the economy goes down
4.Land is a better way to secure your children’s future than any other investments
Nowadays, it is common for parents to open bank accounts for their children and keep adding money to the account as their child grows. Although this is a very good thing to do, but you can do more for your child.
Why not buy a plot of land for your child?
#Land appreciates in value.
#It is an asset that can be passed down from generation to generation.
#Land does not depreciate in value unlike other assets such as cars, houses etc.
#You can use the plot of land as collateral when applying for a loan.
#If you are looking at how to invest in real estate, buying a plot of land is one of the best ways to go about it.
#All of us want our children to have a bright future. We want them to have a good education and become successful. We want them to live a comfortable life and own a beautiful home. All these dreams can only be achieved if we provide them with the right opportunities.
Ideally, parents should start planning for their children’s future as soon as they are born. This can be as simple as opening savings account in the child’s name early on or buying a plot of land for the child when it is still affordable. The idea is to invest in something that will grow in value over time.
We have already discussed the drawbacks of saving money in bank accounts and other financial instruments like PPF and mutual funds. They are great for short-term goals but not practical for long-term goals like children’s education and marriage because most such instruments do not beat inflation. In other words, their real value decreases over time, which means that they will not meet your child’s needs in the future unless you keep adding more money every year.
Buying land is the best solution because it provides you with two things:
#The land itself will increase its market value over time, providing your child an asset that he/she can use later on in life to fulfill his
#There are so many ways to invest and build wealth but there is nothing as steady, tangible and profitable as owning a real estate.
Owning land will not only give you pride and joy but also give you a sense of security knowing that you have something to fall back on in times of need.
When it comes to investing for your children, there is nothing more worthy than buying them a plot of land. Land appreciates at an incredible rate over the years. It’s a good idea to buy some now for your children and watch they appreciate while they are young.
Here are some reasons why you should buy land instead of a bank account:
The time will come when your child will be going to school, may be to college and then to the university, so you must be sure that your child will have a good future. We all want our children to have better life than we have. It is very important to provide them with good education, but also to help them financially while they are still young, so they can start their own lives easier, once they grow up.
You can open a bank account for your child and put some money on it, or you can buy a piece of land for him/her. Which one do you think would be better for your kid? You can buy the land for your child now and let him/her know about it when he/she grows up.
Imagine that when you were young and you were told that you already have a piece of land on which you could build a house later in your life. How would that sound? It sounds amazing. You would be able to afford it much easier because the price of land is much lower now than in 20-30 years from now.
You can not only help your child by buying the land, but also secure his/her future and make him happy at the same time (when he grows up).
Why you should buy a plot of land for your children instead of opening bank account for them?
I’ve been thinking about this for a long time.
As a kid, I was always poor. We didn’t have any money, and my dad never had a job! I remember growing up with nothing. No money, no support – not even any help from the government.
We were in poverty back then, but we weren’t alone. There were other kids like us too! And they were just as poor as we were. They didn’t have any money either, and their parents never had jobs either!
As I got older, I started learning more about what it means to be poor – how being poor affects people’s lives (and why). I learned that poverty can lead to all sorts of things – crime, drug abuse, teen pregnancy…you name it!
So when I had my first child at age 19, I decided to do something about it: I bought land for my children.
It was a small parcel with an old barn on it – just enough room for me and my new family (my wife and two daughters). It wasn’t much, but it was ours!
Why you should buy a plot of land for your children instead of opening bank account for them?
There is nothing wrong with having savings account for your children, but in my opinion as an investor you are better off buying real estate than saving money in the bank.
Here is why:
1. The interest rate will never beat inflation.
2. The money is not working hard enough: it is just sitting there and not making you any money (and in case of negative interest rate even losing value)
3. The return on the investments (ROI) is totally undependable, it purely depends on the stock market and I don’t know about you, but I certainly can’t predict what the stock market will look like next year let alone in 10 years time!
4. If you have a good investment property it will keep rising in value and if you are lucky enough to find one that increases more than the rate of inflation it will make your initial investment more valuable by outstripping the rise in inflation.
5. If the property is a Buy-to-Let (BTL) and you rent it out, then your initial investment will be paid back over time by your tenant.
6. You can build up
7. It is a gift which keeps on giving.
8. You can make the land valuable by developing it into a house, school, hospital etc so that your child will not have to go through financial stress when they are grown up.
9. It is safer than any investment option in the world because you cannot lose it or overspend it.
10. Children can sell or rent the land out and earn a living from it forever but money in bank accounts can get stolen or disappear at any time.
11. Money in bank accounts is subject to inflation and loss of value but land appreciates in value and does not lose its worth for generations.
12. If you put money in bank accounts for your children, you will have to pay taxes on the interest earned from those accounts but no taxes are deducted from the appreciation of real estate properties including land because they are assets that are not subjected to income tax laws (at least not yet).
13. Land is a natural resource that cannot be destroyed unlike money which can be lost very easily if you do not invest wisely with it.
Parents want the best for their children. They want them to have a better life than they did. This is why parents save money for their children, either in bank accounts or by buying property for them.
Saving for your children’s future is a great idea, but it can be difficult to decide which instrument is better suited for your goal. Let us take a look at how the two compare against each other:
1. No inflation risk
When you buy land, you do not need to worry about inflation. There is no way that a plot of land can become worth less than what you bought it for. In fact, if it is not a speculative deal, there is only one way that the value of land can go — up. The same can be said about gold and silver too. And when compared with bank FDs and savings accounts, there is absolutely no comparison in this regard because the interest rates on bank deposits are far below what inflation rates have been in recent times.
2. Forced savings
When you put money into an FD or a savings account, there is nothing stopping you from withdrawing that money and spending it on something else (except perhaps taxes). But once you buy land, all transactions need to be recorded and documented by government authorities.
What if I told you that there was a way to give your child a head start in life, and help them have the lifestyle they desire?
What if I told you that you could do this while also preserving your wealth for future generations?
What if I told you that you could do all of this with little risk, and very little effort on your part?
And what if I told you that you could do this all with a plot of land?
Well, you can! And there are several reasons why buying land for your children is a great gift!
The saying goes, ‘Don’t put all your eggs in one basket.’
But with so many different types of savings and investment accounts available, plus the options to invest in shares, property and collectibles, it can be hard to figure out where to stash your cash.
Here, we’re looking at whether it’s a good idea to put money into a savings account for your baby or child – and if so, which type is best.
If you want a mix of security and flexibility – and there are no limits on how much you can withdraw – a bank or building society account could be for you. But if you want security, returns and control over your investments, then investing in a plot of land is the way to go. Check out our guide on how investing in plots of land works here.
I have just returned from a trip to Delhi. I was surprised to see that there are many cities in NCR region that have become completely residential.These cities have no commercial establishments and the people who live there work in Gurgaon, Noida and other places that are more developed.
One of my friends shared an interesting story about his son with me. He had bought a 2-B apartment in one of these townships when it was still under construction, around 8 years back. The apartment cost him 2000$ and he took a home loan for the rest of the amount at 11% interest rate.
When I met him this time, he told me that his son had recently sold the house for 5000$ and had used the money to pay off all his other debts. He told me that his son was no longer interested in property but wanted to buy a new car instead.
The story is not unique as many people whose parents bought flats for them during the real estate boom are now selling their properties to pay off their loans (usually credit card debt).
My friend also told me that most of his friends were doing the same thing – buying flats for their children so that they could live independently once they got a job after graduation
When you have kids, one of the most important things you can do is start saving up for their future. But how to save money for your children? How much should you be saving? What’s the best way to do it? Can you really make sure they’ll be able to afford college and retirement?
Opening bank accounts for your children is something many parents do. But as an alternative, why not consider buying a plot of land for your children instead of opening bank account for them? Here’s why:
1. Invest in something that will always have value. A bank account is great, but it’s just money, which can easily disappear in a bad stock market or if the economy tanks. Land, on the other hand, has inherent value and will always have a use — and some people will always want to own it.
2. No maintenance fees! Unlike a house or other property that needs upkeep and maintenance, land typically doesn’t require any work at all unless you choose to develop it. Even then, there are only so many things you can do with land that would need regular upkeep — mostly landscaping, which isn’t nearly as expensive as maintaining a house or building.
While we all want to provide a good future for our children and grandchildren, we often focus on the things they need now instead of the things they need later. What happens when you run out of money and can’t provide for them anymore?
Land is one of the oldest forms of wealth preservation and has been a reliable investment throughout history. It is a tangible asset that will always be valuable, and it can be sold or transferred easily if necessary. With this in mind,
Here are 7 reasons why you should buy a plot of land for your children instead of opening a bank account:
1. You can’t lose money on land. The worst part about having money in the bank is that you don’t actually own anything. All it takes is one government bailout or recession to wipe out years of savings in an instant. Land is a tangible asset that doesn’t disappear during a crisis, and it gains value over time as the population grows around it.
2. Land never loses its value. Just like real estate, land appreciates with time and demand. Even if you never develop your property, it will always be worth at least what you paid for it (and probably more).
3. Land is easy to sell or transfer
In today’s fast paced world, it is important to secure the future of your kids. You can achieve this by buying a plot of land for them. This is the best decision that you can make. There are numerous benefits that are associated with buying land for your children. Below are some of the benefits:
The land that you buy will appreciate in value over time
Open a bank account for your children today, and you could be leaving them with a nasty surprise when they come to inherit it.
Inheritance rules mean money left in an account will usually be subject to a 40% tax bill if it is worth more than £325,000.This is because anything above this amount counts towards the ‘nil rate band’ after which inheritance tax is applied.Land and property isn’t included in the calculations for the nil rate bands. So if you buy a plot of land for your children, and leave it to them when you die, they won’t have to pay any inheritance tax on it.
The value of the land doesn’t matter – even if it rises substantially in value over time – it won’t be taxed as part of your estate.Saving for your children is a great idea, but you need to do it in the right way.Setting up an account for your child may seem like the best way to save money, but these accounts are often not suitable for long-term savings goals.
This is because they usually pay very little interest, and you can’t put very much money into them. Some are also not always flexible, and they might have tax implications that you aren’t aware of. The best way to save for your children is to invest in their future by buying land for them. Land is a scarce and valuable resource, so it will increase in value over time. This means that your investment will grow as the years pass by.It’s also easy to sell if you need access to the money, so there’s no risk of being stuck with a bad investment.Investing in land is a good way to ensure that your children have something tangible that they can use to secure their future.
A bank account as a gift to a child is an excellent idea, but you have to make sure that it is an investment account, not a savings account. The difference is that an investment account lets you use the money in the account to fund investments. This means your child has the opportunity to earn more than just the rate of interest paid on a savings account.
Why would this be better than buying savings bonds? Because, unlike savings bonds, you can put money into an investment account whenever you wish. With the right type of account, your child can also take money out and use it for whatever purpose he chooses. You can open the same kind of investment accounts for yourself and even do some family investing, buying stocks or other investments together and learning about how investing works as a group.
Saving money for your children’s future is always a good thing. By buying savings bonds, you are contributing to their future. However, if you want to give them something with much more potential for growth, open an investment account in their name today.The idea of leaving a legacy for your kids is very appealing, but it is important that you think about how best to do this. Leaving money in a bank account is not the best way.
Most people are aware that tax is payable on the interest on cash savings, but did you know that when you die, any cash left in your accounts will be subject to inheritance tax (IHT)?If you leave money to your children and they die before you, the gifts can be subject to IHT when they die too. This means that by giving those cash and helping them on their way, you could be unintentionally making them poorer.
It is possible to protect gifts from IHT if you survive for seven years after making them. However, if you die within this period, the gift will count towards your estate for IHT purposes.
Writing by…Robert Lawrence Africa
