Land purchase and resale. What is important to know?
It’s no secret that investments in land are one of the most reliable options, since the number of risks in this case is practically minimized. That is why many entrepreneurs seek to buy a land plot for residential or commercial construction, ensuring the preservation of their capital and in some cases even a stable profit (for example, by renting out premises or the entire plot of land).
Purchase + resale of a plot. Why is it beneficial?
According to experts, the profitability of such investments can range from 15 to 45%. Higher profits are usually achieved when buying a plot at a price below market, for example, in forced sales, when the seller is interested in speed, not maximum income.
Moreover, it is not necessary to set yourself the goal of buying a plot of land in a big city, since in modern realities, land in small villages can bring no less profit, thanks to the daily developing infrastructure.
How to determine the liquidity of a site for the construction of commercial real estate
1. Location and infrastructure. It is necessary that there is a traffic intersection nearby and stable pedestrian traffic that brings potential buyers. Other nearby commercial premises are equally important, as they may be your competitors.
2. Purpose and type of soil. Before buying a land plot, it is important to make sure that it can be used exactly for your needs, since not everyone has conditions for the construction of specific objects, and in some cases it is much more profitable to simply install an MAF (a kiosk or a shopping pavilion), in which you can both trade independently and lease. However, before planning this, you should consult with experts regarding the permissibility of building the property you need on the land.
3. Configuration and area of the site. The scale of construction and the level of complexity of the implementation of your plans, not only in terms of architecture, but also in the landscape design of the adjacent territory, directly depend on this.
4. Communications or the ability to carry them out (electricity, plumbing, ventilation, etc.). First of all, it is worth making every effort to ensure the comfortable work of your employees and the stable functioning of the facility itself.