PH Real Estate - The Best Ways to Choose a Land Property for Investment

Majority of experts agree that strategically located land properties are better investments than houses. This is due to the fact that the values of lands typically appreciate throughout the years, while the values of houses usually depreciate because of their wear and tear.

For that reason, if you want to purchase a real estate property for investment, a piece of land is best for you.  You would certainly earn a good profit with land properties. Whether you build a house, a business establishment or decide to resell it, you will, at all times, emerge the winner.

What are the best ways to choose a land property for investment?

1. Find out the prime lots or lands.

Lots or lands found in prime locations, such as lots near the heart of the city, or lots near business establishments, would be more expensive. Nonetheless, it would also be more profitable for you in the long run. Lots in urban areas are more expensive that lots in rural areas. Everybody seems to want to live in the city. Nevertheless, there are exceptions; there are also lands in rural areas that are good investment targets. This is most applicable in rapidly developing rural towns

2. Determine if the area is a danger-free zone.

Is the area where the land sits earthquake-free, flood-free and erosion-free? These are serious considerations you have to take into account. You can’t built a house in these danger zones, and you can’t resell it either. 

You may be able to resell it but it would be at a much cheaper price than you have initially bought it. So, watch out carefully for these pitfalls. Do your own research and don’t rely on news passed on by other people, especially from an agent. 

Verify every data brought to you. It’s better to be certain than to be sorry later.

3. Find out if the land title is clean and legitimate.

Verify if the land title is clean and legitimate. You can do this at the Registry of Deeds. When the Registry of Deeds has a copy of the title, which has been filed properly, then the person is indeed the owner. Find out if there are mortgages on the property. You could visit the bank concerned to confirm. You can also determine if the person, who claims to be the owner, is registered as the rightful owner. In instances when there’s deceit and fraud, report to the concerned authorities swiftly.

The concerned authorities may be the police, personnel of the Registry of Deeds, and a trusted lawyer.

4. Find out if the necessary taxes of the land property were all paid.

The land owner must have paid the Real Estate Tax annually. Don’t buy a land with overdue tax payments. If the taxes aren’t paid, you would shoulder these expenses when you buy the property.

The owner may be charged of tax evasion if he had willfully refused to pay his Real Estate Tax.

Unpaid taxes could indicate that the owner may be irresponsible, and this should ring a warning bell. You may want to investigate further to know if there are more hidden surprises.

5. Appraise the value of the property.

You can hire an appraiser to do it for you. This way you would know if the listed price is correct. In cases when the land is overpriced, the appraised value will give you an idea of how much you could bargain for.

Bear in mind that the agent has a certain commission too. Hence, know how to bargain reasonably. 

The agent is also working for a living; don’t haggle so much that the agent is left with nothing. You might not know it, but you may need the agent’s services again.

“Karma” is real. It’s the Law of the Universe. “What you sow is what you reap.”

6. Consult an architect or an engineer to know what possible structure is ideal for the land.

Would you want to build a business or a house on your land? Since it’s an investment, you may want to build a business to further expand your earnings. Strike while the iron is hot, so to speak. Business would flourish if the land is located near the city center, or beside commercial areas.

Anyhow, whatever your plans you have, you should consult experts in real estate to know if your plans are feasible.

These are the best ways to choose a land property for investment. Once you observe these strategies, you would be ensured of excellent returns. Keep investing on land properties as the values of these will increase almost every year.

Tips on how to learn about new land properties for sale

To help you out in searching for a lot to buy, here are some tips:

Provide your calling card or leave your number with real estate companies and instruct them to contact you when there are new listings of land properties.

Provide real estate agents with your calling card, and inform them of what you’re looking for.

When you go around, look for ads displayed on walls or posts. Some sellers don’t want to hire an agent, so they usually sell their properties directly to buyers.

On real estate websites, provide your email address, so that when there are new land listings, the company will notify you, ASAP.

Conclusion

Ensuring that you get back your investment and some profit is a smart way to invest. Go over the items listed above and make sure that you observe them one by one. 

Rest assured that your investment would prosper with superb returns or ROI (Return on Investment), if you’re patient and diligent enough to work hard to attain your goals.

Purchasing a piece of land turns you into a winner because whatever you plan to do, the land remains to be an excellent type of investment.

What are you waiting for? Search for that piece of land now and invest your money.

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