As many investment markets worldwide seem to be suffering, such as gold, pensions and the stock market it is surprising that investment in land is still a popular way to achieve profit from returns. Buying land is an increasingly popular form of investment for many people.
Land varies immensely falling into categories such as residential and commercial; in addition, land can also fall into categories such as agricultural, farm and real estate with and without planning permission to build. The price you pay for your investment is directly related to the demand for any piece of land and the quantity of the plot. By understanding this relationship between size, location and quality it is possible to make sound investments.
The most important factor when buying any piece of land is its location. Whether the piece of land is in the countryside or in an urban settlement will mean the price varies greatly. While the price of land with planning permission will be greater, the risks related to the investment are far smaller. For instance, a plot in the country may be susceptible to planning permission restrictions meaning that as an investment it could turn out to be a poor profit making opportunity. This usually means that land is cheaper in the countryside, although it is harder to develop.
Also important is to look at the surrounding area when thinking of buying land. For instance smell and ambient noise are likely to affect any development plans.
Additionally there may be zoning issues that affect the development opportunities. Land that is zoned as greenbelt will not be suitable for investment as in most cases any building will be restricted, if allowed at all. This is why as an investor it is important to research any piece of land thoroughly to ascertain whether any legal barriers may prevent making a profit.
An essential piece of information to consider before buying land is the existing routes and road access. This is important because a piece of land that has excellent road links will be more likely to achieve permission for development and new builds than a property that is in the middle of nowhere and only has a dirt track reaching it. Preferably a piece of land should be connected to both the electricity and water mains supply. This will not only make it more suitable for development, but will save a great deal of money, as having a plot connected privately can be extremely expensive.
Speculating in land however is not without its risks, it is hoped though, that with a logical and methodical approach it will possible to secure a plot that has a high chance of making profits. This means taking into account location, zoning issues, transport links, the amenities present and the chances of securing planning permission. If all of these factors are researched and studied thoroughly it should be possible to become a successful land speculator. Naturally investment is always going to be a risk, so by minimizing the risk you increase the chance of profits.
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