Are you thinking of investing in land? This type of investment has a lot of potential for profit; it is a limited resource and is in high demand. However, not all are worth purchasing because of timing and a few other factors you need to know.
Experts have cited the following factors to look into before making a significant investment seriously.
Determine Your Goals
Investors have various goals in mind when making a big investment, like buying land. Some buy and sell immediately, buy and hold, and buy, develop, hold and then sell. The approach to the mentioned strategies is different because there is a lot of speculation about the value of the property you just purchased.
Be clear about the reasons you have for investing in the land; once you determine this, taking the next steps will be easier.
The quality and composition of the soil of the land you buy will determine the cost of constructing anything on it and if you can grow plants. This will affect the cost and additional investments you need to make for the foundations of a house or any type of property you build.
Consult an engineer and land surveyor to determine the quality and type of soil. Take as much time when looking for land for sale here in the Geelong region or elsewhere.
Understand the Climate
Australia has a varied climate that affects the value and potential of land. The annual rainfall, the temperature swings across seasons and even seasonal shifts can alter the price of a property. Other than financial matters, the climate of the land you are eyeing will also affect the way you build your house and the lifestyle you want to have.
The climate will affect the insulation or cooling of your house, the kind of plants you can have, the type of kit home you need, and how much energy you will require. These will all add to the cost of your initial investment. Know the climate of the region and make an informed choice.
Access to Utilities
The land may seem bare and full of potential, but its accessibility to utilities should have an essential role in your decision-making process. Are there any companies that provide water and energy in that area? Can you generate your own energy using solar panels?
These are pertinent questions that need answers before you decide to buy.
Australia’s climate can cause severe storms and floods that may damage properties. You’ll also have to face the risk of wildfire in some areas. Some of these natural disasters can happen at any moment. The location of the land you want to buy may be in the way of these potential calamities.
Consult experts to identify the zones that are likely to experience these.
Potential for Growth
If you are planning to rent or sell the land you developed, you need to consider its potential. Are there planned developments in the area? These can be in the form of business districts, entertainment areas, schools and others.
These will have an effect on the value of the property and will make it attractive to others.
These are some of the factors to consider when buying land. Include these in your decision-making process to make an informed decision and get the most value out of your investment.