Investing in land as a real estate business is a decision that must be analyzed in detail. For this reason, it is necessary to resort to a professional adviser who knows the market; or a specialized company that takes you step by step in the investment process.
Regardless of which of the 2 you choose, you will receive the necessary help to obtain the best return on your investment. To do this, I leave you with specific and detailed information on the main points to consider when purchasing land.
What to consider when investing in land.
1. Size.
It has been proven that the larger the plot of land increases its utility and achieves better results as an investment in the short, medium or long term.
Generally, due to their nature, these properties are usually priced per square meter (xM²). Therefore, when examining the characteristics of the land it is important to consider the purpose of acquisition; the intended project; in addition to the utility of the particular property of interest according to its potential, both commercial and market.
2. Location.
Within this concept, the time in which you want your return on investment must be taken into account; considering that the location is not limited to a physical or geographical place.
The time of acquisition and the specific time within the market are also important, in addition to the characteristics of the environment of a piece of land or property. For example, services, these can make a big difference when buying and of course when building or selling.
Another important factor is the communication routes, we must analyze which are the main roads, primary and secondary; That will give us the guideline to determine the possible consumer.
In case of wanting to rent or sell and above all accessibility and social mobility, all this can be observed with the growth of the city and/or with urban development.
3. Value.
Regardless of the price or the costs invested in the land, the value is the best indicator for investment analysis; since it is mainly determined by the potential of the land, the needs it covers within the sector, whether industrial, commercial or residential, and the type or purpose of the real estate investment.
4. Conditions.
Choosing a piece of land implies knowing the area and the investment purpose. Once the objective is clear, the main characteristics are, in addition to the location, the surface, measurements and boundaries, the front, the background and above all, the orientation. Since this is going to give us greater added value in case our project is commercial or industrial. The optimization of land use, since not all properties are feasible for land use other than the one initially intended.
To invest in a piece of land we must also review the technical documentation; that the owner or his representative are the ones who are making the sale; the legal and fiscal situation of the property; that it has all its history in the integration of the file; as well as the legal framework of the municipality or state.
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