The Reason of Buying Land
Investment in land has always been a valuable commodity to consider, and helps investors diversify their portfolios. A diverse portfolio is a financial safety net that could help secure an investor’s future.
Buying land is a lucrative investment for many reasons, including:
Limited Supply and Increasing Demand for Land
The supply of land is limited, yet the need for land is ever-increasing. The price of land doesn’t face the volatile changes that happen with other assets or commodities. A piece of land will increase in value over time and generate financial profit in the future.
Flexible Usage
The opportunities you get from buying land, specifically raw or undeveloped land, are endless due to its flexibility. For example, land can be used to build a future house. Another option is to hold onto it until the value increases and then sell it to a developer or investor. Alternatively, you can build a real estate to sell or rent out. The flexible purposes of land makes it the perfect investment.
Land Purchase as a Long-Term Investment
Buying land is an excellent long-term investment option. Unless infrastructure is built within the premises, minimal maintenance is needed for the asset. Despite this, the value of the land constantly increases every year. This is perfect for long-term investment, or you can use it as part of a retirement plan for doing business.
Less Competitive
Investment in land is less competitive than investment in real estate. Land is available for sale in many different locations to choose from based on personal preference. An investor can buy a piece of land or even a few hundred meters of land in a suitable and potential location at an affordable price.
Less Risky
Investment in land is less risky than other types of investment, such as stocks. As a tangible asset, land will not disappear or suddenly lose its value. No one can steal or destroy the land, which makes it less risky and an excellent investment choice.
Considerations for Land Investment
Before you jump in and buy a piece of land for investment, there are several things to consider to ensure its profitability:
- Be clear about the purpose of buying land.
Investment in land requires lots of finance, so you better be clear about the purpose of it in the first place. There are different types of potential buying land, including residential development land, livestock-raising land, farming land, and recreational land. Make sure that the land has the necessary permission for the specific purpose. - Basic utility access and availability
Take note of the access and availability of basic utilities such as electricity, water, and transportation before purchasing the land. Lack of utilities may make it difficult to use the land or may increase the cost of doing so. - The market value of the land
The value of the land is a crucial aspect to consider before purchasing for investment purposes. The size, dimensions, location, road access, potential buyers, and prices of land in the neighborhood area will help to determine the value of the land. - Location
Location is the most important thing to consider before buying land for investment. The location affects the value, price, and profit potentiality. Make sure to do research to find the perfect location that suits your budget and the main purpose of the land use.
Land for investment is a highly promising type of investment. The return will vary greatly depending on the strategy you use. Do proper research for a wise land investment strategy and enjoy the long-term benefits from it.
For the specific purpose of investing in land for industrial use, pay more attention to the supporting facilities and infrastructure nearby. Better yet, invest in the specific industrial plot in the industrial estate area. PT Suryacipta Swadaya’s industrial estate, Karawang and Subang Smartpolitan, is located in the heart of West Java’s industrial belt. The estate features a world-class infrastructure, such as being close to seaports and airports, roadways, high-speed internet, and waste management facilities, which offers a perfect congenial setting for industrial use in the future.
