Everyone wants a cheap piece of land that will appreciate fast. But cheap is most often substandard, lacking a feasible investment strategy. Land appreciation in 10 years or more is at the top of every real estate investor’s priority. Since land is a limited resource, the developments around the area you buy determine its value and potential in the future.
Buying a piece of land at the city’s heart is more expensive but with a high appreciation rate than upcountry lands. A 2020 World Bank urban development report estimates that six billion people will be in urban areas by 2045.
Therefore, you can know if the land you buy will appreciate in 10 years by its proximity to critical infrastructure.
Land value can rise exponentially, up to 20 times in 10 years. But there are things to look out for if you want that land appreciation. First, look at the do’s and don’ts when buying a piece of land.
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Do’s And Don’t Before You Get Started
Here are some things to remember whenever you want to buy residential or commercial property:
- Do survey the land
- Consider accessibility. Know how far the land is from your home.
- Know the land zone, code, and ordinances before finalizing the purchase
- Buy land once you know the use of the adjacent fields. Don’t assume you can rezone the land later.
- Put your finances in order.
- Consider the value of properties in the neighbourhood
- Perform every recommended environmental test, such as soil contamination, drainage, and fertility
- Buy land with vacant property instead of raw land
- Watch trends and use them to forecast land appreciation
- Don’t buy land to hold. Buy to build.
- Work with a reputable firm. That will ensure you get the correct information regarding policies and trends in residential or commercial properties. Dealing with them saves you money, time and energy in the long run if you ensure the firm has an excellent track record. They will help you negotiate with the seller, follow due diligence, and close the deal.
Land appreciation in 10 years
To purchase land whose value will appreciate in 10 years, look at the following:
Locate necessary social amenities within a 10km radius
As I said earlier, location is fundamental to predicting how much the piece of land you buy will appreciate in ten years. How far is it from a business area?
Major cities worldwide receive private investors ready and willing to buy and build real estate and business parks. Competition for land in an Urban area makes land rates and the appreciation values crazily high. Similarly, the principle is the same if you purchase land next to a small town and another in your rural home.
For the land to be of much value ten years from now, ensure it is near critical infrastructures like:
- Schools
- Hospitals
- Banks
- tarmacked roads
- Electricity
- markets
- police stations.
If such infrastructure is unavailable, ensure that there are plans for such developments in the current plan. It is safe to buy the land if you locate these within a five or ten-kilometre radius. Accessibility to these social amenities boosts investor confidence and promotes development. You will find your land sandwiched between small, medium, and extensive business enterprises in ten years, making it significantly more valuable than today.
Read also: African Infrastructural Projects You Can’t Get Enough Of
Land Appreciation If Electricity Is Accessible
The days before Nikola Tesla invented electricity were dark days. Electricity is the crucial driver of industrialization and development. Access to electricity predicts the development potential of a place, and lack of electricity compromises security.
As with infrastructure, ensure there are current plans to have a power grid or that it is at least 10 kilometres away. Even if you do nothing on the land, your neighbours will slowly extend the power lines towards or even over your land.
In conclusion
We cannot tell with certainties what happens in the future, but if you watch economic and political trends, do extensive research before purchasing land, work with reputable experts, and educate yourself on the principles of Real Estate. You will have a higher chance of making a wise investment that will give good yields in 10 years.
Are you thinking about buying residential or commercial land? Or have you bought a piece already? When did you buy it, and how has the land’s value appreciated over time? Could you share it with me in the comments below?
