Most people ask this question when they want to invest in real estate. The first step is knowing the pros and cons of each option. In this article we tell you the benefits of investing in either a land lot or a property so you can choose the one that works best for you.
Pros and Cons of investing in a Land lot
Buying a land lot is an important decision as much as buying a property. It is important that you take your time to know the majority of possible options in the market to choose the most favorable one.
The first thing is to choose the place. The location is basic; market prices change considerably depending on that. That’s why to facilitate the process you need to know the largest number of options.
The location factor is essential to define the use of the land lot, because if you want it to build a house it must be close to places of access to health, food and other needs that you and your family may have. This option is quite flexible, it depends on you how interested you are in investing in something close to the city or not. Prices in faraway places are usually cheaper.
Consider that if on the contrary, the propose of the land lot is for business, it is possible that the most favorable location is near other business or populated places which may increase the price.
Another benefit of buying a land lot is that you can invest in a property design that is completely you. Designing a house from scratch is an incredible experience. Giving your home or business your vision, can make even your most ambitious project a success. But this has some things against it; the reality is that buying a land lot to build is much more expensive than investing in a property. Because you have to consider the net price of the lot, the costs of construction, design, municipal procedures, lawyers and others.
Pros and cons of investing in a property
Choosing to buy a property already built is a safe option. Knowing what you have from the beginning is the best if you want to avoid logistics problems.
Doesn’t mean that is easy; it’s also important that you know all the options on the market. The prices of real estate market have ranges from cheapest to luxury. That is why one good thing is to settle your budget so the real estate agent can help you to know what your range of options is and you can choose the one that suits you best.
One good thing about investing in a property is that the variety of possibilities are BIG. This allows you to know and choose the best option for your needs. Having the property already built is a plus, because you don’t need to imagine anything, you just need to fall in love with the one you like the most.
However, buying a probity can have some negative things among them; we can mention the fact that most of the time the properties have already been occupied before, which can make the property need some extra repairs that will cost you more money.
Another thing is that you cannot choose a design to your liking. Buying a property limits the possibilities of getting creative, since remodeling a property is a very large extra cost. Although if your idea of buying a house is not for your own but for business, there is also House Flipping, which is a very interesting investment trend in real estate.
The decision is up to you and your own needs. Both buying options; the land lot or the property have their good and bad sides. It’s always recommended to consult professionals in both cases, because making a correct study and appraisal can save you from spending extra money.
In the end, the most important aspect is in the use and ideas you have in mind and the budget. If your budget is low, it is best to buy a property already built, because that can save you a lot of headaches; however if your dream is to build, the land lot is your best option. Remember that when you’re building, you have to keep in mind future expenses that will come out with the process, that means that you could spend much more than what you thought.
We hope this article has been to your liking and that it can help you to choose what to invest in next. if you have any specific questions that requiere a professional answer, you can always contact one of our real estate advisors.
