What Things to know before you Invest in Land Property?

Investing in a piece of land is a decision that should never be taken hurriedly. Compared to investing in gold or buying an apartment, land investments are riskier. But, these investments have better chances of profits too. What is inevitably required of the investor is developing a deeper understanding of the investment and the market and carrying out in-depth research before making any such investments.

The usual and the most common practice revolves around finding a cheap overseas property. However, that is not advisable. It is always good to seek expert help from a local real estate agency to traverse through the process. For example, if you are keen to buy a cheap Cyprus property, you should talk to a Cyprus-based agent. Thankfully, these days, due to the rise of the digital platform, you can look online. Besides, you can take help from a professional agency based locally with international connections.

Things to know when investing in a land property

1. The need for monitoring the economic trends of the market

Suppose you want to buy a land property in Cyprus. It is important to gain as much knowledge and information as possible about Cyprus's ongoing real estate trends. It is here where the role of an expert real estate consultant is of significance. Understanding if land investments are appreciating or depreciating in the country vis-à-vis other kinds of investments is essential. You also need to know what kind of decisions are being taken by the government, are there any industrial corridors being considered, are new airports or SEZs coming up in the region, are there any plans for building smart cities or developing the infrastructure are there in the pipeline, etc.

2. Land investment is an expensive decision

It costs quite a lot to invest in a piece of land. Reason – land is limited, and there is no scope for creating more. That is why land costs are ever rising. If you have a shortage of funds, it is best to consider other kinds of investments. Also, land investment is illiquid - it means that you cannot sell off the land whenever you want; it takes time to do so.

3. Risks

There are plenty of risks when buying land, especially in the case of international properties. For example, a Bulgaria property can get encroached, or other grounds for legal litigation could b. Sometimes, the government might take over the land as part of compulsory acquisition, and the owner may or may not be compensated. The compensation may be satisfactory or not-so. You need to take into consideration these risks before making the investment decision.

4. Check rules regarding necessary permissions for further development.

For example, suppose you are buying a property in Dubai that you wish to develop further for residential purposes or commercial usage. In that case, you need to be sure that local regulations permit you to do so. Also, you must check the land easements.

Whether you are seeking to invest in a land property in your country or abroad, there are few things that you should know well before making any investment decision if it is an international investment, more reasons to be cautious and well-informed.

The Redland Property Group has over 100 years collective experience in the overseas property investment industry, working as agents, developers, lawyers and accountants, we really are equipped to handle any situation and are on hand to help and advic