Need income outside of your salary as an employee? Try to invest. However, you don't know what you want to invest? You can consider investing in land. Land is a very promising investment because land is a primary need to support the main needs of humans.
What about the benefits? Unmitigated land investment can give you a huge profit. Therefore, many people invest in property, in this case land investment.
From land investment, you can explore the function of the land itself. You can use it to build houses , shop houses, rent houses or even boarding houses. You need to realize that land is a potential economic source because of its limited number, but is needed by many people. With population growth increasing every year, the resulting land price will soar.
This increase in land prices can vary, as does the current land price which also varies in various regions. Many factors are the cause of the high and low increase in land prices, including factors such as location, land condition, population density, economic factors, and so forth. In addition, land investment is also considered as the most easily implemented property investment that can provide benefits that are not inferior to other property investments such as houses and apartments.
However, you need to keep in mind that although land has a variety of tantalizing benefits, there are a number of things you need to pay attention to and consider carefully when choosing land for investment, because it is not impossible that this will become the host's weapon for you. What do these things cover? here are some things you need to consider so that your investment is profitable:
1. Land Location
Determining the location of this land is very important, in this case you must be really observant in estimating which land has the potential to experience a high price increase. Generally, land located in business and industrial centers has the potential to experience sharp price increases, as well as locations that are residential areas.
In addition, the area being developed also has good prospects, such as locations being developed for new education, business and industrial centers, government projects, and so on. Land located in the area under development is often referred to as half-cooked land, meaning that the land is ready to be cooked to bring high profits.
In determining the location of the land, you must also consider whether in certain locations it is often hit by disasters, for example floods, landslides, and so on. In addition, people usually do not like the location of land close to something uncomfortable, such as garbage disposal, lots of thugs, haunted, near graves or graves. Therefore, you must be very observant in choosing it.
It's a good idea to first communicate with residents or notaries around the location of the land, they certainly know better than you about the actual comfort in the location of the land.
2. Land conditions
These soil conditions include many things, including the shape of the soil, the flatness and density of the land, the size of the soil, and the face of the land, all of these things are very important for you to consider. For landform problems, buyers usually prefer land that is square and trapezoidal. However, sometimes buyers feel reluctant with a rectangular shape whose face width is not good, specifically rectangles are usually still in demand as long as the width of the face is 40-75% of the total length of the land.
For flatness and soil density, this will also be a problem for you because buyers prefer flat and dense soils, uneven and not dense land, of course, need money to repair it, and this will be a weakness in the negotiation process, the impact is the buyer will ask you for a discount.
For soil size, this will be better if you adjust the location of the land. For example, if you find land in an elite location that is predominantly rich, a wider size of land will be preferred because rich people certainly have the desire to build large mansions according to their dreams.
In this case, try to have a minimum land size of 400m2, and for locations with the majority of which are capable of lower middle, try to get a maximum size of 200m2. This size is preferred by the lower middle class because of lower prices. For the position of the land, the land is usually preferred facing north and south because of evenly distributed sun lighting, besides that buyers sometimes also like the land facing east because of the morning sun.
3. Negotiating Land Prices
In negotiating land prices, of course what we expect is that buyers agree with the price we offer. Well, to realize what you want, actually you only need a strong reason why we offer that price to the buyer, if you can give a strong reason to the buyer, the buyer will be affected by these reasons. Then, what can you make an excuse for? There are many, for example, all the advantages possessed by the land, with the advantages they have, then a land must be sold at a reasonable price, if you act as the seller.
Then, if you act as a buyer and are looking for a land, when you find it, look for the weaknesses that the land has, either in terms of location, shape, size, or other aspects. You do this so that in the negotiations you will have good reasons for the land to be bought at a cheaper price. As long as you don't cheat, this will be a good thing for you to do.
4. Legality and completeness of land documents
In relation to land legality , this relates to certain land rights, and these land rights can vary, including rental rights, usufructuary rights, property rights, and so on. If you buy the land for the purpose of owning it, make sure that the rights you get are the property rights to the land, and make sure that the letters from the land or the certificate of ownership are complete and the validity is clear.
However, you don't need to worry too much about it. For that, do not hesitate to ask experts, in this case an experienced notary.
5. Financial stability
This land investment will be able to provide greater benefits in a longer period of time. Compared to two years, land will be more profitable if you sell it when it's five years. This is as discussed above that the price of land every year always increases.
In this waiting period, you must really pay attention to your finances so they don't collapse . Why is that? You can imagine if in the midst of your waiting period there are difficulties in money, what will you do? Of course you have to sell the land you have. If the level of profit that you expect has been reached is not a problem. However, if the land waiting period is only one or two years, of course this will greatly reduce the level of profit that you will get.
Basically the one or two year waiting period has also benefited from the difference in the purchase price with the selling price. However, whether the difference can cover the other costs that you have incurred, such as the name return, taxes, the cost of taking care of the papers, and other costs. It could be, the difference between the purchase price and the selling price is only used to cover these costs, then what's the benefit? Even though here you have sacrificed time, energy and mind. For this reason, you must maintain financial stability.