Thinking outside the box for maximum gain also works well in the real estate market. One such idea that investors looking for good properties could consider are burial plots.
It makes complete sense because just like a house which every person needs as part of his everyday existence, dying is part of the human life and most people would eventually end up six feet under after 70, 80 or 90 years of life on earth.
Of course, some may opt to be cremated instead of buried in the traditional way, but you would still need a vault to store the urn with the ashes, unless you prefer to keep the urn home, or you opt to spread the ashes in the sea.
FJP Investment, a British company that offers burial plots in UK to residents of the United Arab Emirates, disclosed that people investing in plots could enjoy a return on investment of more than 37%.
The website explained that plots are sold at GBP £1,850 (Dh 11,306/USD $3,080) and sold after 2 or 3 years for a minimum of GBP £2,595 (USD $4,320), based on contract terms. Adding the exit administration fee of GBP £50 (USD $83.24) per plot would provide a minimum net profit of GBP £695 (USD $1,157), which is 37% ROI.
UK laws allow foreign ownership of cemetery space in the country. The terms and conditions are the same for burial plot owners regardless of their citizenship. British passport holders could also buy burial plots.
An FJP advisor said that plot owners should anticipate some extra expenses such as the courier cost for shipping the contact back to Britain and bank fees when remitting payment to the company in UK.
This unique type of investment has attracted expats in Dubai who have accounted for 15% to 20% of all purchases made in the last three cemeteries in UK owned by FJP.
The website Cemetery Invest estimates a 40% projected growth in UK because of unlimited and guaranteed demand since everyone will eventually die. It said the price increase in burial plots over the past century is not surprising because demand for cemetery space would keep on growing with Britain’s population forecast by the National Office of Statistics to reach 71 million by 2033. That’s 4.3 million people more in the next 7 years alone.