When it comes to investing, it is always a good idea to take all precautions to avoid investing in a bad deal. Also before buying a land, it is better to find out about its real value. In this article we give you 6 criteria that will help you evaluate a land before buying it.
Table des matières
Supply and demand
When it comes to investing, it is always a good idea to take all precautions to avoid investing in a bad deal. Also before buying a land, it is better to find out about its real value. In this article we give you 6 criteria that will help you evaluate a land before buying it.
The development possibilities of the land
By development possibilities we mean what is achievable on a land. Urban planning constraints on the height and use of buildings can create a difference between the value of two sites which nevertheless appear to be identical. In other words, what is achievable on a land.
For example, in the same neighborhood, two lots of the same area will not have the same value. Indeed, if with one, the owner can achieve a R + 7, with the other he can only achieve a R + 2 because of these urban constraints.
Proximity to economic activities
Cities are created through economic activity, so it is normal that proximity to economic activity is a criterion for evaluating land. All things being equal, the closer a parcel is to economic activity the more valuable it is.
Identifying future areas of strong future economic activity is a great way to spot real estate investment opportunities.
Accessibility
Accessibility depends on the size of the street on which the land is located. Land on major through-roads is thus more valuable since it is taken up by businesses and businesses seeking visibility favorable to commercial exploitation.
However, this same factor can be a source of noise pollution and traffic jams. Ultimately the value of land depends on your project.
Physical attributes of the land (1)
Neighborhood infrastructure concerns sanitation, the quality of roads, schools, parks, restaurants, etc.
None of these infrastructures are the responsibility of the owner and yet their development has an impact on the value of his land. This is why real estate is the only investment that is appreciated through the efforts of others.
It is therefore important to pay attention to the development of the neighborhood’s infrastructure in order to invest or disinvest in time.
Physical attributes of the land (2)
Physical attributes refer to elements such as:
– The area of the land;
– The nature of the soil;
– The geometric shape.
Some of these criteria are often overlooked, although they generally have major impacts on the cost of construction or on the efficiency of land use.
