Plots are defined as the parcel of immovable or real property in the real estate of an area. Plots have many benefits when invested in and can be a great business opportunity for many individuals. Plots have fluctuating prices that one can sell-off at the best time to profit off of the sale. for example, a plot of land in an under-construction society will be low in value, and then years later when the residency in the area or commercial facilitation develops, the plot of land will be worth much more with its newfound surroundings. Plots are much cheaper in comparison to constructed property and give the owner some liberty to build their vision upon them.
Many individuals invest in plots as just a business investment, however, some passionate individuals buy empty land lots to fulfill the vision of their dream house or business setups upon it. Moreover, land lots in acres are bought by society project developers which exponentially increase in worth as development continues.
One has to be strategic when it comes to dealing with plots. One should consider factors and strategy going into the investment to ensure the best possible outcome for them; whether it is seasoned investors or people looking to develop property upon it in this article we are revising some important points for one to consider before buying a plot:
Determine your intent:
First and foremost it is important for the investor or buyer to make sure the purpose and intent of their investment into the plot of land. This should be a clear and solid foundation that the direction of search for an ideal plot of land is going to be built upon.
Are you going to put up a rental property on the land lot or are you looking to build your very own dream house? Are you investing in the plot as a pure business investment to sell it off at a higher value or are you a business developer looking to build a commercial plaza atop of this land.
The variety of options one can take the destination of an empty plot into are many, that is why clearing your purpose is important. It is important for the reason that you don’t backtrack and end up going in a greater loss from the investment. For example take the example of a person that will buy a plot of land for selling to a higher value later on, in the midst of holding onto the property; the buyer of the plot may get distracted by the various other opportunities and in a spur of emotions; say; builds a shop on the land of the plot. If the shop is established well, the risk pays off. However, if the shop on that particular plot of land is not in business; not only did the investor lost a lot of money developing the empty lot into a shop; selling this unsuccessful establishment to another buyer is also going to be a tedious task.
When it comes to property in general; the location is a very big determining factor to its importance. Not only in the case of developed business offices, shops, and other types of properties, even if you are buying the land in an under-construction project, but you also have to consider the location of the said property and what importance it holds in its location. Chances are if this project is located near a commercial hub or important attractions of a city the plot will have a greater financial value. On the contrary, if the housing project is abandoned unfinished or located astray of important locations, the value of the land plot will also be lower.
For example, if a buyer of plots is looking into a plot for sale in Islamabad to build a house; they themselves will consider the importance of the location and what kind of benefits investing into the plot they will get in return. Most people looking to develop a house on an empty lot will be discouraged by a nonideal location that lacks amenities or is part of an unfinished residential project.
The type of plot:
There are many different types of plots on the market. They are classified as such for the convenience of investors. For example, some plots are solely committed to development in a commercial hub of the city. Meanwhile, plots that are part of a housing scheme will only allow residential properties to be built upon them. This aspect of buying a plot further ties in with the purpose aspect of buying a plot.
For example, if you are buying a plot for sale in Islamabad’s DHA or Bahria Town amidst of residential area but you intend it for a grocery shop. It will not only be inconvenient to the neighborhood to have a shop in the middle of a house street but it may not even be legally allowed that can leave you at a loss of time and money that you invested in the land.
Such restrictions are called zoning restrictions and every city has them in place for the solid development of infrastructure and city planning.
Time of Purchase:
Another key aspect of buying a plot of land in an area is the timing. For example for a business investor looking to sell off a plot for higher value, let us say; there is a very well developed residential project and which is already high on the list of demands, this plot will be quite expensive to buy and chances are that in an already developed area the prices will not go much higher. On the other hand, a well-reputed builder is going to start a housing scheme in a relatively key location, however, due to lack of development in the area the value of plots is not that much; a few years later this will increase by a very significant value that if bought early; the investor can profit off of a great deal from it.
Similarly for people looking to build an office shop or residence upon a plot can benefit from a similar strategy. However, in both these cases, the fate of the land lot can greatly affect the outcome of your goals. So making a good call is also important when buying a land lot in an underdeveloped area.
Safety of your land:
Land lots located in smaller development projects may not be as well regulated as compared to being placed in larger cities and being part of well-reputed projects like DHA and Bahria Town. The smaller the scope and the more ambiguous the dealing of a plot of land is the less secure it will be and the more chances of a property fraud being committed will loom over the property.
Plots for sale in well-reputed areas of the city are much more secure during the course of development as well as provide for a safer and more secure life once their surroundings are established, naturally attracting much more traction from land buyers giving a better return on investment. For this reason, we believe it is better to pay a bit more on a safer and secure land than take risks by developing into cheaper and unsafe properties.
In all matters regarding the property, paperwork is key. If you are not a real estate expert or are doubtful or curious about the sensitivity of the paperwork; make sure to consult a professional real estate agent or a lawyer to ensure smooth transaction of ownership of the property.
This is a very important thing to consider as errors in paperwork or devious dealers of land can leave you at a loss or empty-handed, so be aware of the potential scams on the market and assure the authenticity of the paperwork.
Keeping a backup plan:
Mishaps can always occur in the dealing of the property so it should be considered to have a backup plan. in case of buying land in an under-construction society whose development dates get delayed or the project not being approved can really be a hard blow to your investment. For seasoned investors ‘not putting all your eggs in one basket’ can be good advice.
Plots come in variety and size that a diverse set of investors can look to. Whether they are residential, commercial, or mixed purpose plots; the demand and supply are increasing by the day. With everyday construction and projects being established in major cities the number of plots for sale in Islamabad, Lahore, and Karachi alongside many major cities is quickly growing.
From determining the purpose for which you are buying a plot, educating yourself about the area, making predictions to the success of your investments as well as anticipation of things going wrong and keeping a plan B; one should take care and caution with a strategy in mind at every step of this process; to ensure the success of their deal.