Investing in land plots has always been a promising and profitable activity.
Allotments of land were granted to feudal lords, nobles, and nobles for special merits, but how profitable is it to invest money in this industry today? And although, according to experts, the situation does not look rosy, this method of investing is an opportunity to get stable profits in the long term.
Features of investments
The state restricts investors by prohibiting the use of land for other purposes.
Article navigation
- Land as an investment tool
- Purpose is a key parameter of a site for an investor
- Working strategies for investing in land in 2021
- Share and earn
- Cottage at auction
- House in the village
- Development is everything
- Pros and cons of investing in land
- Pitfalls and risks when investing in land
- conclusions
Investments in land are a trend that is gaining popularity in 2021. Despite the fact that this is one of the most long-term investment options, it guarantees the investor good returns if approached correctly. When choosing a site, it is important to pay special attention to its intended purpose, location and availability of infrastructure.
Strategy No. 7 - sign an agreement on integrated development
Every municipality has vacant land that needs to be developed. Such places can be found out from the land development plan. Then you directly enter into an agreement with the local Administration on the integrated development of territories for the purpose of housing construction or land development. Since the function of distributing lands located on the territory of urban or rural settlements is transferred to the settlements themselves, concluding such an agreement will not be difficult.
Profit
On the allocated lands, you can organize a cottage community, build a logistics center, or rent out plots to enterprises.
Land as an investment tool
The prospect of investing in land plots worries investors, especially beginners, due to the difficulty of predicting changes in their value. When planning a transaction, it is necessary to take into account too many nuances, which force one to abandon this kind of investment. In most cases, this is the right decision, since transactions with private and commercial real estate have fewer risks and bring greater profits.
If you perceive land as an investment instrument, then you should understand that this is an investment of money for the further resale of the property at a more favorable price. If the situation with apartments is predictable - they become more expensive from year to year, allowing investors to make money on the difference in price, then in the case of land plots everything is a little more complicated. It is reckless to say that the value of land will increase significantly in a few years. It is likely that the price will drop several times, which will make the deal unprofitable for the investor.
On the other hand, in the future, the area in which the land was purchased may turn into an elite residential complex, then the cost of land will jump several times.
Where to start investing in real estate - 4 specific steps
Investment activity brings high profits if the investor carefully thinks through his every step. Where to start investing in real estate? I advise you to start by studying the principles of investing itself; they will also be useful if you decide to invest in cryptocurrency or stocks. Study the relevant literature, here is a list of useful books:
- Robert Kiyosaki "Real Estate Investments";
- Benjamin Graham "The Intelligent Investor";
- Jeremy Miller, Warren Buffett's Rules for Investing.
And then apply the theory - 4 practical steps
