As we become more financially independent, we learn to invest in things like gadgets, jewelry, and most especially properties such as land. Unfortunately, real estate properties are particularly expensive, so we tend to think a hundred times before closing a deal.
In accounting parlance, land is an asset that will not depreciate, meaning that land has infinite use. And for most people, buying a property is an excellent investment for a variety of reasons.
Some may build a business or a house on it someday, which they can use for themselves, sell, or rent out. On the other hand, other people buy land just to sell it in the future when the value becomes higher.
In this article, we’ll give you a few tips to help you determine whether or not land is a good investment to pursue.
1. Determine the cost of the surrounding land.
Perhaps you want to buy land because someday that’s where you will build your house. But also, you may want to sell it in the future, and assessing the value of the surroundings will help you determine the selling price of your purchased land. In general, the value of land increases as time passes by. That being said, this could be an opportunity for you to buy land and sell it at a higher price.
2. Take note of the existing deeds of restrictions.
Depending on the group or entities who have authority on the land that you’d like to buy, deeds of restrictions might be an obstacle for you in the future. That’s because these are oftentimes considered as rights that may restrict a portion or even the totality of your movements. It may also affect the course of actions that you’d like to fulfil on the purchased land.
3. Keep an eye on the surroundings of the land.
Some parcels of land are being sold at a cheap price because the immediate surroundings have some serious issues. Do not be lured with land sold at a cheaper price. Make sure that the surroundings would not give you a headache in the future. Check if the land is situated in a favorable topography or is less exposed to calamities. Also, pay attention to things like neighboring houses and the crime rate. After all, safety is of utmost importance.
4. Check if essential utilities such as electricity and water are being made accessible or are well provided.
As part of investment tips when buying land, one of the things that you should check is if utilities are highly accessible or if there are existing issues on these. As an investor, you should always look for the long term. That means you should not only look at the cost of the land but also other factors that will affect you in time. Electricity and water are things that fuel day-to-day tasks, activities, and life and if you’re wise enough, these are the things that should not be left behind during your decision-making.
All in all, purchasing land is really a huge decision that requires a multi-faceted kind of thinking. It will compel you to be careful and keen enough on details and factors that may give serious implications. Lastly, purchasing does not only involve looking at cost. Remember, you have to think of the long-term.