11 Questions to Ask When Buying Land
Land investment is one of the long-term investments. You may have to wait 10 to 30 years to get a good return on
your investment. A house or a business can give you regular rental income, but when you buy a piece of land, you may
think that it will have no visible impact in the short term. However, this thought is wrong. To get results with
land investments, you need to be very patient.
Are you in a hurry?
Your land investment will only give you a long-term return. If you are looking for a 5-10 year return and can wait
more than 10 years, we can recommend investing in land. It can be difficult to sell at value when markets are
stagnant, so you may have to wait until the market recovers.
Questions to ask yourself before buying land:
- What is the status of the land in terms of zoning?
Land means unzoned land. If the land you buy is zoned, it will increase your income, but if it is unzoned, it is
limited to increase the value added. The land is a zoned piece of land. It is a zoned piece of land that will
increase in value as population and commerce increase in the area where it is located, and as more is built, if
the zoning is changed, its value will increase at the same rate.
- What is the zoning plan of the property?
You should definitely find out in advance about the land you are thinking of buying or the zoning plan to which
the land is attached. Be sure to consider the possible impact of categories such as residential, commercial,
industrial on your investment. Do not forget to find out how suitable your land is for development according to
the zoning plan. The value of the land varies depending on the construction to be built.
- How is the location of the land?
The most important factor in buying a property is undoubtedly the location. The increase in population, commerce
and production near your land will simultaneously determine the increase in value of your investment. The
increase in the value of the property can be determined by the increase in population, commerce and industry, as
well as valuable investments and infrastructure projects in the surrounding area. As a result of these
developments in the surrounding area, after some time, zoning of the area where the property is located occurs
and your property may turn into a parcel. Let us take an example: small towns often grow along the road to the
big city. The purpose of land investment is to have the foresight to buy a piece of land that can be developed
before development occurs, and to benefit from the increase in value that comes with development.
- Can you take the risk?
Buying a plot of land is risk-free. Its value steadily increases at a certain rate as the population continues
to grow and the economy develops. Undeveloped land carries risks. At this point, it is important how much risk
you want to take.
- Which areas should we avoid?
Shared Title Deeds, conservation areas and watersheds should be avoided. Watersheds and conservation areas
cannot be cleared for development, so your investment will not yield the return you had hoped for. Land near the
forest is also risky because it can be included in the forest zone. Square plots of land are best. Rectangular
plots can also be attractive. Trapezoidal and round plots are very risky as they make construction and use
- How close is the plot to the road?
The frontage of the lot to the road and the width of the frontage increase the value of the lot. If a commercial
building is built in the area, the yield of the land will increase thanks to the wide frontage and the signage.
- How big should the plot be?
When zoning comes, the plot becomes land, while the area you own shrinks by up to 40%. At this time it is
important that the plot you buy has a buildable size even after this interruption.
- Is the land suitable for a farmhouse?
If you buy a land with beautiful nature or view, after some time you may have the desire to build a farmhouse
here, even if there is no development. You should also consider this situation.
- What is the geological structure of the land?
When you buy a plot of land, you must take into account the possibility of earthquakes. The geological structure
of the land you want to buy will determine the characteristics of the buildings that can be built there, if it
is a construction area.
- Is the price attractive?
It is very important to buy a land plot at the right price. The price of the land is determined by the
development of the land and the income from this development. You can get professional help in the calculation.
- Will you take a loan?
Land plots are not properties that can be sold quickly. If you are in a difficult situation, you will not be
able to monetize the land immediately. Do some research and find out what your budget is and how much loan you
will need to take.