Investing in a lot requires strategic decisions in order to get the best possible return on that investment. A wise decision can lead to an improvement in your finances, thanks to the potential they can offer to various commercial or industrial sectors.
In this article, you will discover some of the aspects that you should take into account before making the decision to buy a lot for investment. How to choose the best land for your investment?
Why invest in a lot?
When thinking about real estate investments, land may not be the most eye-catching property, but its potential lies in the fact that it is a “blank canvas” ready to be the protagonist of new projects.
Investing in a plot of land where no real estate project has been developed can offer the ease of starting a construction project tailored to the needs of the financial objectives.
However, the selection of a good land for the development of investment, production, housing or other projects involves some main characteristics that must be taken into account.
Factors in choosing a lot for investment
Location
A strategic location can be the key to the success of our investment. Lots located near sites with development potential will add value to the property over the years.
In addition, a strategic location can provide accessibility and positioning for our business or project. It is important to remember that different projects may require specific land and locations.
Land use
Land use permits, municipal regulations and environmental restrictions are another important factor to consider when choosing a lot for investment. For the construction of any type of building, it is necessary to comply with certain regulations.
Some lots have already been issued with land use permits, but if you need to apply for your own, you can contact the municipality closest to your land.
Land size and shape
The size and shape of a lot will limit the extent to which we can expand our buildings. The topology of the land may affect the type of buildings that can be built, so the cost of adapting the land to the buildings to be built must be taken into account.
Similarly, the possibility of expanding onto adjacent land is another factor that can be taken into account.
Access to services
Having access to drinking water, electricity, internet coverage and access to public roads are aspects that should not be overlooked. These basic services are essential for the establishment of any real estate project.
In case the lot you plan to invest in does not have these services, you can always request the connection of these services through the AYA (for potable water services) and ICE (for electricity service).
Cost evaluation and return on investment
Another important consideration is whether the investment cost of the land is commensurate with the expected return on investment. This cost-benefit analysis will prepare you to consider whether the investment is in line with your expectations and whether other additional expenses need to be taken into account.
Soil evaluation
Finally, an evaluation of the soil type and climatic conditions of the area may influence the final decision. A soil survey is essential to ensure that your land is suitable for your planned construction or development.
Areas with natural hazards may limit your ability to use the land or require costly preparation.
Choosing the right investment property is a process that requires research and planning, always prioritizing the achievement of your desired goals. From location to cost and land characteristics, every aspect can affect the success of your project. At Nativu, our consultants can help you find the ideal land for your project, from residential to commercial.
