Vol. I — Est. 2024
Land banking
Holding land inventory is a leveraged bet on prices: it multiplies gains in an upswing and losses, impairments, and cash strain in a downswing.
The question that settles it
Who bears the carry and the price risk on the land between purchase and sale, and for how long?
When it breaks
Option-based land control (small deposits for the right to buy finished lots) shifts the price risk to the option writer, so the balance sheet no longer behaves like a land bet.