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LCI Essentials - don't buy an investment until you understand the intricacies of valuing land based on its zoning potential - Part two


A week or so ago, in part one of this report - I told the tale of how Australia went from a country with progressive policies, with a tax system that captured the rent of large land owners, rather than robbing labour wage incomes - to the system we have now. A rent seekers paradise!


More than 80% of today’s wealthiest Australians have made their fortunes speculating on property, mining, banking, superannuation, and finance — gaining favourable property rezonings, planning law exemptions, mining concessions, labour law exemptions, and credit creation powers.


If you want to free yourself from wage slavery, you have to learn to play the game of Monopoly as they have.


I showed in part one, how Homer Hoyt had used his research into land, development, and zoning, to create great riches for his family through employing these rent-seeking strategies.


But not before he had learned from expensive mistakes that almost wiped him out totally.


It's possible to lose money through investing in the wrong type of property, even if you do so in the most bullish phases of the land cycle.


That's why knowledge of both the cycle - and the essential components of what makes a block of land valuable, is vital to you as an investor.


Whether you plan to buy now - or in the future - or even speculate on stocks that have exposure to real estate in their portfolio of assets - you need to understand that it's not all about "Location, Location, Location!" as the agents at a Saturday real estate auction would have you believe.


In simple terms, land is worth its zoning.


Being able to assess the development potential of a block is essential if you want to make an an accurate assessment on its price.


If you can't do it - you'll always risk overpaying.


Therefore, in this edition I want to give you some practical tools to demonstrate how to assess land's value based on what's written in the zoning certificate. It's going to enable you to target blocks of land with the greatest potential for land price appreciation.


If you do not have this knowledge - you risk making wildly expensive mistakes.


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