Investment in land: you can earn 200-300%, and you can lose everything.
Well, when you know how …
On the question of whether the land is a good investment tool, our consultants gave unexpectedly diverse answers. “Optimists” have been discovered – their position boils down to the fact that investments in this asset are reasonable – always and under any circumstances. Proponents of this view referred to the authority of Mark Twain (“buy land — they no longer do it!”), And also the fact that the land plot (unlike, for example, an apartment or house) is not depreciated …
Their opponents (if not “pessimists”, then at least “cautious”) said that not every land is suitable for investment. And not every person – to the role of an investor …
Portrait of an ideal
What can you advise a person who still decided to invest in the land? First of all, to think not about buying now (i.e., about how remarkably cheap a given object it gets), but about selling later – about who will buy this asset from him, when and why.
If the village is new, it is necessary to evaluate the previous projects of the developer. Further, the characteristics of the project: demanded architecture, a high level of improvement, the presence of all necessary (especially social) infrastructure in the vicinity or in the village itself. As for a particular plot, its location is very important: homeowners with a view of the water or near the forest leave the exposition in the first place. The most difficult are the plots near the entrance group or along the fence. The optimum area of the site for the buyer of expensive housing – 20-25 acres. “
In general, our experts summed up, the formulas for successful investment are quite understandable: smaller plots (about 12 acres) have high liquidity, the most profitable lands are near water, forest and near a large city
Do it yourself
The traditional idea of investing is to acquire something, and then sit patiently beside it, waiting for the buyer to come, willing to pay a higher price for your treasure. Without arguing at all with this model (and also hotly agreeing that patience is one of the most important qualities for an investor), let’s look at a slightly different point of view: isn’t it possible to do something with our site? To increase its appeal?
The answer on the surface is to build a house.
It is not necessary to build an expensive house, you can: “purchase a plot in a liquid settlement, build a house using a technology appropriate for the type of settlement (for permanent or seasonal housing holiday), and then sell the finished property, as many buyers want to buy a ready-for-living house. Such an investment can bring up to 30-50% per annum
As for other options for upgrading (to conduct communication to the site, change the purpose of the land to more convenient for construction, etc.), these measures, according to our consultants, are not realistic for individuals.
In general, we agree that land can be an investment tool – it is possible in principle to generate income here. But this tool is complex, heavy, and requires a great deal of knowledge from the investor. So the average man in the street, having the will of heaven some small (by the standards of the real estate market, of course) amounts – 2-3 millions – here it is not recommended to be thrown. It is more reasonable to go where everything is predictable and understandable – for example, to the market of typical new buildings.
Another common problem with the purchase of plots without a contract in the townships is long-term construction in the neighboring plots or completely vacant plots acquired for investment purposes. The developer cannot legally dictate his will to the buyer, who became the owner of the site without a contract, usually the recommendatory measures come into effect.
In general, the majority of purchases in the country market today are not investment, and this is normal, since it says that the market is focused on the buyer, on his needs. The share of investment purchases in today’s market is about 10%. At the same time, as a trend in 2014, an increase in the share of investment purchases in the highest quality projects can be noted.