While raw land acquisition can offer ROI for real businessmen and real estate, land acquisition is often an untapped and overlooked market. According to Meerwise wais Habibzi, you need to have the training, education, and knowledge.
It is often seen that undeveloped land is called raw land. It is a piece of land that is in its most natural state. As the land has a high demand of development, raw land offers great value due to its limited supply.
When it comes to traditional real estate, you will need to look at the grunt work. It is often seen while you must make the amount and get frustrated for not worthing it, you will often need to find houses combined with the competition.
It may be challenge for you to find the right kind of raw land and develop it successfully. There are other things, which Meerwise wais Habibzi will tell you about the raw land development.
Benefits of Raw Land
If you are an aspiring developer, you will be looking for a raw land for development. Before you dive to develop such raw land, you will need to know a few things about raw land.
It is seen raw land development is a process of turning underdeveloped land into something habitable and valuable by building on it. It is acquired by various depending on the type of land and on your needs.
There are some common steps, and elements for all development projects, which are discussed further in this article. According to Wais Habibzai, there are some basics of raw land development, which are also narrated in this article.
Is Vacant Land a Good Investment
There can be question in your whether the land is precious asset depending on the site circumstances, and location. The land will increase the significance if the land is present in places with exceptional vistas, or near a coastline or river.
It will be an advantage for you if you are holding a raw land. There will be a possibility of increasing value of the land. It is seen that raw land can be rezoned, and subdivided with resulting portion of land being sold on higher price.
According to Wais Habibzai, the owner often losses the tax benefits of developed property when raw land is not providing any money. Investors will need a lot of cash to cover service fees, cover repayments, and other expenses if the person wants to keep raw land.
There are two different angles when it comes to investing in raw land. They are
- Resale and redevelopment
- Land speculation
The investor expects to keep the property until a change in land a demand developed to due to urban expansion, or change in land occurs. It is necessary for land developers to engage in entrepreneurial activities such as rezoning for subdivision and land use.
As per Meerwise Habibzi , there will be not only profitable selling of various subdivided portions, but also installation of infrastructures such as water, sewerage, roads, electricity and gas.
Is Land Development Profitable?
It is seen that profitability of raw land is dependent on two factors. They are timing and location.
According to Meerwise Habibzi, if you looking for areas with high income, high population growth, and proximity to employment centers, you will have the chance to earn high money from raw land.
There will be some benefit in return as well.
High Potential Returns
It is seen that a well-located property will become an asset, when migration creates a desire for new zonings and population growth become a good indicator.
The value and price of rural land prices will be at much higher rate per square meter, when rural land is rezoned to urban land.
Final Words
If you are a new developer, there are several things to learn about raw land. You will become an expert, and will express your desire to invest in raw land development, after you know various things.
No comments yet