Real Estate

Why Raw Land Could be Your Best Investment

By now it has been found that land is the most solid material for investment available at large. In this sector there is a very little chance of the property of being stolen. Basically raw land can be defined as an unused property which is underdeveloped where there are no buildings or other infrastructure that is still in the natural state. A great place to start if you’re looking to buy land is Land Century. When the customers think of buying these raw lands then they have to be very careful while making this decision of the purchasing of the land. While buying land the customers should pay less and then sell it at a high price when the time is right by earning a good amount of profit. The investment into raw lands should be done by those customers who are willing to wait for quite some years until they get the right person to sell the property. For those people who want to have an immediate income by selling their properties the investment in the raw land is not a very good idea. Here is a good video about raw land purchasing as well:

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The different factors that are involved in making a decision for buying the raw land are:

Advantage of the location: If the location of the raw land is at the heart of the growing city or around the circumference of a known city then the value of this land increase at a very rapid rate. These raw lands if present in those areas where there is a growth of population attracts investment from the developers and is considered worth the deal. The idea behind the investment in the raw lands is to carefully choose a property that will welcome the added value which will attract the customers who are willing to pay a big amount while moving along the way in this business.

Property that is developed in comparison with the raw land: Basically it is found that buying the raw land is less expensive if compared to the buying of the developed property of the real estate in the advantageous location because no improvements are needed on raw land. However, the banks that provide loans in buying raw land property are very cautious about lending money for these raw lands. The banks make a careful observation that these raw lands are not being used for any commercial or income related purpose and are usually asked to pay a huge amount at the beginning of starting the project which may reach up to 50% of the purchasing amount. In addition to this there is a mortgage loan that has to be paid up to 20%, if not more. These land loans have a very short maturity period of 10 to 15 years as compared to 30 years in case of mortgage loan. Even the interest rates are higher while paying for the raw land but that is not so regarding mortgage loan.

Right timing: Global economy is subject to change and at all levels they go through a boom and a recession phase of the business cycles. The local or national economies are often linked to some of the major industries in the market. The location where the raw land is present the population growth has a very important role to play as they strike up the sales of land for several years to come. It is wise to buy raw land at times when the economy is going slow and then try to make extra money on that purchase by selling at a higher price at the time when the economy is in its boom period. Boom period of business cycle involves prudent decision.

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