Starting the year with a brand new investment? The decision to get land is a great choice in terms of tangibility and promise of returns. Despite this, keep in mind that all investments come with risks, and the best way to keep the risks in control is to get the ideal piece of land.
To help you streamline this daunting process, here are things to look out for when getting the optimal lot for sale for the new year.
The cliche term “location, location, location” is still relevant today and continues to be the most important factor for profitability in buying real estate. Closeness to amenities, green spaces, scenic views, and the neighborhood’s status factor prominently into residential property valuations. Closeness to key locations such as markets, warehouses, transport hubs, thoroughfares, freeways, and tax-exempt areas plays an important role in commercial property valuations.
When looking for the optimal lot for sale, it is not just the present amenities that matter, but future ones as well. A key is a mid-to-long-term view regarding how the area is expected to evolve over the investment period. For example, today’s peaceful open land at the back of a residential building could someday become a noisy manufacturing facility, diminishing its value. Thoroughly review the ownership and intended usage of the immediate areas where you plan to invest.
Plans for new schools, hospitals, public transportation, and other civic infrastructure can drastically improve property values in the area.
Commercial development within the lot for sale’s location can also improve property values. When you’re shopping for land, try to find out whether any new public, commercial, or residential developments are planned and consider how these additions might affect the desirability of the surrounding areas.
A great way to gather information about what are the prospects of the vicinity of the property you are considering is to contact the city hall or other public agencies in charge of urban planning. This will give you a great grasp of the plans of long-term area planning and determine whether or unfavorable the property is based on the development around it.
Another thing to consider when choosing the optimal lot for sale will be the location of the future house to be built on it. If the land you want to buy is right on a busy road or very close to a highway, it may be difficult to sell as a residential property in the long run as the noise won’t be appealing to most buyers.
The same can be said for houses that are in close proximity to commercial property like a grocery store or gas station, or houses on streets that get an unusual amount of parking traffic and parked cars, such as those near large churches or commercial spaces.
Alternatively, a house with a wonderful view or near a body of water or surrounded by trees tends to be more valuable, both now and when it comes time to sell it.
Since real estate products such as houses and lots have low liquidity while holding high value as an investment, it is important to know what potential income streams come with the lot for sale and know what purposes you want as lack of clarity with what you actually want to do with your lot for sale may lead to unexpected results such as financial distress, and missing out on potential income.
To figure out your purpose in getting a lot for sale, identify what your end goal with it is, and then plan from there.
- Buy and self-use – In this method, you gain a tangible asset that can satisfy one of your capital needs, shelter. Here you will not have to pay for rent and have the benefit of self-utilization of the property while gaining returns through value appreciation.
- Buy and lease – Leasing a property you will build on your lot for sale will bring you monthly revenue and long-term value appreciation at the same time. However, the temperament to be a landlord is needed to handle possible disputes and legal issues, manage tenants, repair work, etc. It is the most hands-on way of earning income through real estate.
- Buy and sell (short-term). Casually known as “Flipping”, is ideal generally for quick, small to medium profit—the typical property is under construction and sold at a profit on completion. Most people who flip lots try to avail them using the terms provided by the developer when they are still pre-selling, and sell them for cash.
- Buy and sell (long-term). This method is ideal for those who want to maximize profit by waiting for the lot for sale property to appreciate. This is generally focused on large intrinsic value appreciation over a long period. This offers alternatives to complement long-term goals, such as retirement.
Ideal Shape That Fits Your Need
Two lots with the same square footage may not both be buildable despite having the same area. A long narrow lot will not be as useful as one that has four equal sizes. The shape of the lot impacts where the home is situated and the size of the front, side, and rear garden.
Homes on cul-de-sacs (pie-shaped lots) may have setback requirements (the distance the home is from the street) that allow for small gardens but also mandate longer driveways.
Find a lot that has an ideal shape that suits the future house you want to build. To help streamline your search, here are the common shapes and types of lots:
Cul-de-sac – These types of lots are situated at the rounded turn-around portion of a dead-end street. A cul-de-sac property is private since it is not subject to traffic. Unlike rectangular lots, the cul-de-sac lot has a small front yard which is offset by a larger backyard.
Corner lot – These lots are located at the intersection of two streets. A corner lot does not have a great deal of privacy due to traffic on the streets it intersects. However, these lots may be more desirable since access to the sideyard and backyard for vehicles is available from the street on the side.
Key lot – These are lots bordered by three or more lots on the sides and the back. The biggest disadvantage of the key lot is the lack of privacy due to numerous neighbors surrounding all sides of the lot except the frontage.
T-intersection lot – This is the type of lot found at the end of a dead-end street. The biggest disadvantage of this kind of lot is outside noise and lack of privacy. There is also a higher risk of traffic-related incidents given the position of the lot.
Interior lot – This type of lot is surrounded by lots on all three sides. This is the most common type of lot. An interior lot is usually rectangular with a large backyard. However, privacy is limited since the lot is adjoined on all sides by neighbors.
Flag lot – a lot located behind other lots with a long and narrow access driveway to a public street. Flag lots generally have a reduced value due to the lack of privacy that results from being surrounded by other homes’ backyards. These types of lots also lack curb appeal.
Get the optimal lot for sale this year to come by choosing a land whose developer is well known for putting residents first. Located at the heart of the “Lion City of the South”, Sta. Rosa, Laguna, Greenfield City is a 400-hectare self-sustaining network of residential, commercial, industrial, and recreational communities.
Patterned after a park-living concept, Greenfield City puts a premium on open spaces and nature and offers a refuge for those who are looking for a refreshing shift in scenery and lifestyle outside of Metro Manila. Within Greenfield City’s network of communities are residential developments that possess the qualities of the optimal lot for sale.
To learn more about the communities within Greenfield City that provide these lots for sale, click on the link below: