Buying Land For Profit

<h1>Buying Land For Profit</h1>Author: <a title="Javaid Kiyani" href="http://www.articlesbase.com/authors/javaid-kiyani/31740.htm">Javaid Kiyani</a> There are certain factors which need to be considered when buying land. In this article, we discuss the purchase of land for profit. 
 
The first thing to consider when buying land is its location. There is a great difference in the price of land depending on whether it is located in an urban area or the countryside. It may often be difficult to obtain planning permission to build houses on land in the country, especially if the land is green belt. Thus, it may be possible to buy land cheaper in the country. This could primarily be due to supply and demand; fewer potential buyers available. A thorough appraisal of any land, especially its location should therefore be conducted prior to parting with any cash. 
 
The surrounding environment must also be taken into consideration. Smell and ambient sounds play important factors in determining the feasibility of the land for further development. It is not expected that people will trade odors of fumes in urban areas to the agricultural smell of pig dens! 
 
It is also important to identify any zoning issues which could affect the land you are considering to purchase. Certain greenbelt land cannot be zoned and sold as development land. As an investor, you need to be aware of this and ensure you do not buy land that is protected under this scheme. 
 
The geodetic structure should also be identified. This is also necessary to minimize the damage that might result from hazards affecting more particularly the soil. Soil component structure will reveal important information that will determine the feasibility of further development. 
 
Access to the land by way of existing routes and roads is of paramount consideration. Land with good access routes is more likely to achieve planning permission for new build properties than land that is in the middle of nowhere. 
 
Services such as water supply and electricity are also important points that need to be considered when purchasing land. The state of these services must be studied in order to determine if development of the land is likely to be possible. 
 
When buying land, you can either purchase plots with planning permission approved or use a long term approach of buying land with no planning permission in the hope of obtaining it further down the line. Obviously the latter option will provide greater returns associated with the greater risk levels. 
 
To reduce your risk, it may be advisable to purchase an option to buy that land at a prescribed price for say within 2 years. The 2 years should be enough for you to determine whether or not you are likely to obtain planning permission. If planning permission is likely to be granted, you purchase the land. Otherwise, you dont go ahead with the purchase. This way, you only set to lose the option fee and not the entire purchase price of that land.About the Author: Dr Javaid Kiyani is a successful <a href="http://www.hmopropertyriches.com">Property Investor</a> and Internet Marketer. His vast knowledge of <a href="http://www.hmopropertyriches.com">property investment</a> is evidenced by the books he has written. For a FREE course including regular advice and tips on property investment, please visit:
<a target="_blank" href="http://www.hmopropertyriches.com">http://www.hmopropertyriches.com</a>Article Source: <a href="http://www.articlesbase.com/">ArticlesBase.com</a> - <a href="http://www.articlesbase.com/real-estate-articles/buying-land-for-profit-457685.html" title="Buying Land For Profit">Buying Land For Profit</a>

There are certain factors which need to be considered when buying land. In this article, we discuss the purchase of land for profit.

The first thing to consider when buying land is its location. There is a great difference in the price of land depending on whether it is located in an urban area or the countryside. It may often be difficult to obtain planning permission to build houses on land in the country, especially if the land is green belt. Thus, it may be possible to buy land cheaper in the country. This could primarily be due to supply and demand; fewer potential buyers available. A thorough appraisal of any land, especially its location should therefore be conducted prior to parting with any cash.

The surrounding environment must also be taken into consideration. Smell and ambient sounds play important factors in determining the feasibility of the land for further development. It is not expected that people will trade odors of fumes in urban areas to the agricultural smell of pig dens!

It is also important to identify any zoning issues which could affect the land you are considering to purchase. Certain greenbelt land cannot be zoned and sold as development land. As an investor, you need to be aware of this and ensure you do not buy land that is protected under this scheme.

The geodetic structure should also be identified. This is also necessary to minimize the damage that might result from hazards affecting more particularly the soil. Soil component structure will reveal important information that will determine the feasibility of further development.

Access to the land by way of existing routes and roads is of paramount consideration. Land with good access routes is more likely to achieve planning permission for new build properties than land that is in the middle of nowhere.

Services such as water supply and electricity are also important points that need to be considered when purchasing land. The state of these services must be studied in order to determine if development of the land is likely to be possible.

When buying land, you can either purchase plots with planning permission approved or use a long term approach of buying land with no planning permission in the hope of obtaining it further down the line. Obviously the latter option will provide greater returns associated with the greater risk levels.

To reduce your risk, it may be advisable to purchase an option to buy that land at a prescribed price for say within 2 years. The 2 years should be enough for you to determine whether or not you are likely to obtain planning permission. If planning permission is likely to be granted, you purchase the land. Otherwise, you dont go ahead with the purchase. This way, you only set to lose the option fee and not the entire purchase price of that land.

Dr Javaid Kiyani is a successful Property Investor and Internet Marketer. His vast knowledge of property investment is evidenced by the books he has written. For a FREE course including regular advice and tips on property investment, please visit: http://www.hmopropertyriches.com

Rate this Article:

3 / 5 stars - 1 vote(s)

Re-Publish

Article Source: http://www.articlesbase.com/real-estate-articles/buying-land-for-profit-457685.html

Article Tags: Development, Options, Invest, Land, Investor, Landlord, Course, Developer, Property Business, Zoning

Related Videos
Related Articles
Ask / Related Q&A

Play

Bomberman Land - Gameplay - Part I

Play

Bomberman Land Touch! - Gameplay - Part I

Play

Bomberman Land - Gameplay - Part II

Play

Bomberman Land Touch! - Gameplay - Part II

Play

Risen Nightwish Trailer

Latest Real Estate Articles
More from Javaid Kiyani

Lake Chapala Real Estate ideal for Retiring in Mexico

By: Jaime Niembro | 11/11/2009
Lake Chapala Real Estate is one of the best choices available for retiring in Mexico, or just looking for the ideal place to retire anywhere . Besides easy access back home, a near-perfect climate, lots of activities for all tastes and a large North American community, Lake Chapala Real Estate prices are very low, not only compared to American and Canadian prices, but also compared to other favorite Mexico retirement destinations.

Valle de Bravo Real Estate offers Culture and Tradition in the Annual "Festival of Souls"

By: Thomas Lloyd | 11/11/2009
Valle de Bravo Real Estate offers a relaxing ranch - life style or a the provincial atmosphere of a traditional, small Mexican town. While these are the main factors that contribute to people buying in Valle de Bravo, offers an excellent blend of cultural activities which bring a pleasant variety to the area's lifestyle.

Cancun Real Estate offers Mexico Beachfront with Infrastructure Improvements at their Best

By: Cyndi Ader | 11/11/2009
Cancun Real Estate offers one of the best beachfront options not only in Mexico, but on an international level. One of Cancun's strengths is its continuous investment and efforts in keeping up the city's visual appeal and practical usability of infrastructure to high standards. Mexico Beachfront living in Cancun offers high quality in a prime location, and the city government supports this lifestyle with ongoing improvement projects.

Puerto Vallarta Real Estate - Government Cooperation and Investment

By: Jim Scherrer | 11/11/2009
Puerto Vallarta Real Estate is a prime example of how the attractiveness and value of properties can be improved by a high level of cooperation between various governments of different levels. In addition to inter-municipal cooperation in government investment in the area, there has also been "inter-state" cooperation. The cooperation of the governments involved, and the high level of investment included has made Puerto Vallarta one of the prime destinations for retiring in Mexico.

Yucatan Real Estate offers a Unique Combination of Lifestyle and Provincial Atmosphere in Progreso

By: Mitch Keenan | 11/11/2009
Progreso is a destination on Mexico Beachfront real estate in the Yucatan Real Estate area, is one of the few modern oceanfront communities which offers a large variety of attractions unique in Mexico; it also perfectly combines the beauty of its natural setting with the dynamic development and infrastructure of a city, while maintaining the provincial atmosphere of the old port.

Playa del Carmen Real Estate Offers Excellent Investment Choice, as Area Continues to Receive Strong Private and Government Investment

By: Thomas Lloyd | 11/11/2009
Playa del Carmen Real Estate have one benefit, is the excellent potential the area shows for investment opportunities. The strong tourism industry, which has stayed on its feet during the recession, and the continued attractiveness of the area as a place to visit and live. The buyers that an investment in Playa del Carmen Real Estate is a solid investment, one that will be backed by excellent infrastructure, ongoing improvements and continuous offering of more services.

Staging Homes for Sale – Don’t Forget the Yard

By: Mark Ferrer | 11/11/2009
An excellent curb appeal has a great effect on the selling of your home. Homebuyers generally like homes that are situated well and features breathtaking yard appeal. But if broken branches, overgrown lawn and unkempt shrubberies welcome your buyers, they’ll surely think twice before even entering your home for sale. So after cleaning and de-cluttering the interior of your home, don’t relax yet, you still have some work to do – the yard. Here are some tips to help you stage it excellently.

Reasons to Lease a Residential Miami Rental Property

By: Mark Ferrer | 11/11/2009
It’s common knowledge that leasing is the more affordable alternative for homeownership. For some people, saving money to buy a house gets harder and harder as prices for regular commodities spike, although home values drop. If you’re fresh out of college and looking for a place to live aside from your parent’s house, apartments are probably the most advantageous options. In Miami, the right Miami rental property can help you adjust to your newfound independence.

Buying Land For Profit

By: Javaid Kiyani | 22/06/2008 | Real Estate
There are certain factors which need to be considered when buying land. In this article, we discuss the purchase of land for profit.

Organization And Management Of A Successful Property Business

By: Javaid Kiyani | 22/06/2008 | Real Estate
A property investor needs to treat his business as a serious business. You should therefore have several procedures and processes in place to ensure the efficient running of your business. In this article, we will discuss several ideas on how to organize and manage a successful property business.

How to Buy Property Using Other Peoples Money

By: Javaid Kiyani | 21/06/2008 | Real Estate
Property can be bought no money down. This article discusses how you might use other peoples money to buy property.

The Mechanics Of Buying Property From Auction

By: Javaid Kiyani | 20/06/2008 | Real Estate
Before you buy property from any auction, you need to do some serious research. In this article, several useful tips any auction property purchaser can use when considering an auction property are discussed.

Always Do Your Homework Before Buying Property

By: Javaid Kiyani | 19/06/2008 | Real Estate
You should always do your homework before buying any property. Here, we discuss various things you need to consider before and during your property purchase.

How To Hire And Manage Builders For Your Property Development Projects

By: Javaid Kiyani | 18/06/2008 | Real Estate
Hiring and managing builders can sometimes be daunting. In this article, we discuss some of the things you will need to remember when you want to hire a builder and the things you have to do when you find the right one.

A Landlord Should Always Have An Assured Shorthold Tenancy Agreement

By: Javaid Kiyani | 17/06/2008 | Real Estate
Any good landlord will provide a shorthold tenancy agreement to his tenants. This serves as not just protection for himself but also covers the tenants rights.

How To Find The Best Tenants For Your Properties

By: Javaid Kiyani | 17/06/2008 | Real Estate
Various checks and measures need to be undertaken before accepting any tenants for your properties. In this article, we look at how to best source the best tenants for your properties.