The forms of investment in the modern era are indeed quite diverse, ranging from property investment in the form of buildings or apartments to investing in gold, and stocks, to land.
Uniquely, land investment is still able to compete with various other forms of investment because it is considered profitable.
Several things must be known before buying land for investment. Of course, this is important to minimize the risk of unwanted losses.
Reasons Land Investment is the Best Investment
If you are still a beginner in investing, especially in the property sector, then the land investment is one of the most appropriate options.
Why? Because land is a form of property investment that has minimal risk, but provides maximum benefits.
For more details, let’s look at some of the advantages and disadvantages of land investment below.
Advantages of Land Investment
Significant Increase in Land Profit Value
Not only houses, but land prices also continue to increase. You will get this advantage if you choose land as an investment instrument.
The value of the percentage increase can reach 20 to 25 percent, it can even double after 5 years.
It doesn’t stop there, there are many other advantages that you will get if you choose to land in a strategic location.
Save Maintenance Cost
If the type of physical property such as a building has a large maintenance cost, it is different from vacant land which does not require any maintenance.
Unless the land is made for leasing, there will be a cleaning fee or security fee for the land guard.
Use it as a Rental Business
Having vacant land with a strategic location such as close to offices can be used as a business opportunity.
You can turn the land into a parking business or shop for a culinary business.
This method is very useful in filling the vacant land while waiting for the increase in land prices to be resold.
Disadvantages of Land Investment
Need Big Funds
When you are ready to start investing in property, especially land, make sure you have a lot of capital.
This is because this area is included in an integrated residential area, with better infrastructure and facilities.
Long Soil Liquefaction Process
Property investments such as land and buildings are not included in liquid assets, because the sale process takes a long time.
Therefore, this type of investment is not recommended for those of you who are in need of fast funds.
Advantages Depend on Location
In property, the location factor is very decisive. Such as the selling price of land in strategic locations that can rise significantly.
But while waiting for the right time to resell, of course, the land must be used to be productive and productive.
Yes, even though the land is in a strategic area, of course, it will not produce anything if it is left empty for months.
Land without regular maintenance and supervision is very vulnerable to being the target of crime, ranging from mode of property fraud, land disputes, being sold without a permit, to falsifying documents.
In addition, cases of land grabbing are also common, especially when the land is located in dense urban areas.
Lack of Land Credit
The next shortage of land investment is the lack of land ownership credit services in the community.
This is because these products have few enthusiasts, not as many as mortgages or apartment ownership loans.
Profitable Land Investment Tips
Pay attention to the price and location
Although land investment is able to provide large returns with minimal risk, you still have to pay attention to several things before buying land as an investment instrument.
However, the investment value of land is influenced by several factors, one of which is location. Just like any other form of property investment, location is one of the things that must be considered before buying land.
Make sure the location you are aiming for is strategic because this can affect the value of the investment. In addition to the location, you also have to pay attention to the price of the land being sold.
If you want to buy land in an exclusive area. Of course, the price is more expensive than in other areas. After determining the land you want to buy, you can also negotiate to reach a suitable price.
Make sure the land price is in accordance with the budgeted budget.
Do not let you experience financial difficulties because you want to invest in land, but without setting a budget first.
It is also very important to know the land from the targeted area. Such as the price of land for sale in other cities.
Get to know the conditions and allotment of land
Then, also consider any advantages and disadvantages of the condition of the land to be purchased, because it can affect the selling price.
Good land conditions for investment are flat land, not bumpy or unstable contours.
Some of the most frequently purchased and profitable types of land are rice fields and land for housing.
Make sure the letter and legality of the land are clear and complete
In addition to location and price, another important thing that you must pay attention to is the legality of the land.
Always make sure that the land you want to buy does not have a problem. Also, avoid land that has potential problems such as waqf land or disputed land.
You must also ensure the authenticity of letters, land certificates, and other supporting documents.
If necessary, check directly with the local authorities to check the authenticity of the documents and information regarding the land you want to buy.