7 Techniques to Consider Before Buying Land

Many real estate investors have stated that investing in land offers the highest potential for returns and profits among all real estate investments, as land prices have risen sharply. However, it is also the riskiest investment in real estate, as it is the primary raw material for all types of real estate development.

Regarding land investment techniques, here are seven key points:

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Study the city plan before investing.

This is a top priority for anyone considering land investment. Understanding city plan planning allows you to understand the legal uses of each plot of land, ensuring investment decisions are made. Avoid buying land with expectations of good prospects, but discovering that it's undevelopable or offers minimal benefits, risking significant losses.

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Study all forms of transportation.

Whether it's road construction, expressways, or electric train networks, there are two approaches: researching areas with potential for new transportation networks and investing in them; or selecting a location where you want to invest and researching whether the area has attractive new transportation networks. The first option offers better investment opportunities. Go first, take risks first, but gain first.

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Large-scale public and private projects affect land prices.

In addition to new transportation projects being a positive factor for land investment, large-scale public or private projects, such as airports, large convention centers, tourist centers, industrial centers, shopping centers, etc., all affect land prices. Knowing the "insights" about where large-scale projects, whether public or private, will likely emerge in a given area can be beneficial for investment decisions. However, it must be a project with a high probability of success, not a pipe dream project that is assessed as unlikely to materialize.

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Study government expropriation routes.

This can be a continuation of points 2 and 3: Once you know where new transportation networks or large-scale government projects are planned, you shouldn't just rush to secure investment space. You should also study whether the projected area and surrounding areas where government projects are expected to be built fall within the expropriation zone, or whether there are areas within the expropriation zone that you should avoid. Without prior research, you could make a mistake, potentially investing in a land plot only to find it falls within the expropriation zone, leaving you unable to proceed. Reselling will only result in losses.

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Title

It's important to check the title deed and ownership of the land plot, especially land in the provinces. Inherited land presents many challenges. For example, land in the provinces can be problematic due to the lack of original title deeds, which is very risky. Investment is not recommended, as it can lead to problems later on. With inherited land, there are cases where there are multiple owners with rights to the land. Some want to sell, others don't. When you're interested and preparing to buy and put down a deposit, other owners appear to object. This creates a complicated situation.

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Survey Demand

This is also important. In addition to studying land that has potential for future development from various government and private projects, you must also study whether there's real demand in that area and whether there are opportunities for other development. Similarly, land in an existing community location without new positive factors must be studied to determine what the location can offer and whether there's real demand.

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Study the market price in that area

This is also important after studying various issues, including urban planning and transportation networks. For large-scale projects, such as expropriation projects, we also need to study market prices to determine the actual selling and buying prices in that area. This will ensure we set the right price for the land, ensuring it's not too low, which could lead to a loss of profit, or too high, which could result in unsold land.

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Source: DD Property