Today, many understand that the big money is in land investment, and indeed there’s a good reason for that. However, in order to profit from investing in land you need to make an informed decision, and since most people who turn to this route come with money but not with much knowledge in the field, we have collected 8 tips to help you feel safer. The first step is definitely to make a decision that examines the opportunity, but the second step is to stop and check a number of things. Ready? Let’s get started!
Professional guidance along with complete reliability
The most important step is to work with a real estate company that can be trusted. Both in terms of reliability and in terms of professionalism. For this purpose, it is very important to examine resumes, experience, and of course, it is important to examine previous projects.
As you prepare to invest in land, look for a common interest
If you want to make sure that you are in good hands, professionals who think about your financial interest, it is best to contact a real estate company that has a common interest. So, for example if the company that you contact is the one that purchases the land and sells the units, you can be certain that there is a common interest. Do not use an investment company that is “only” an intermediary, because then the chance that it will seek to make the most money without investing efforts to appreciate the land is quite high.
Be cautious at the signature stage
Another important step is to be careful with what happens at the stage at which you sign with the real estate company. Here you should look for a real estate company that wants to sign the land investor on to a cooperation agreement. Why? Because such an arrangement closes everything that concerns the relationship between the two parties, in advance, and your interests are protected.
Investing in land? Do a little detective work!
Even if everything sounds promising, it is always better to invest some time doing detective work. The idea is to find an investor or two who have already collaborated with the company, and thus hear firsthand how they think the total conduct unfolded, and determine their level of satisfaction working with this company. You should also examine who the people behind the company are, including what each person’s area of expertise is.
Examining outline plans
You must always independently examine the “story” of the land in question. How? Examine the total outline plans: national, district and local. In general, agricultural land that is in the process of being approved for use offers a pretty good chance of realizing a substantial profit. However, keep in mind that this is a slightly lengthy process
Examine the location of the land
The location of the land is of paramount importance. For example, in the area of the lowlands, there is a shortage of land designated for construction, and therefore in this area, the probability that the land in question will be “thawed” is higher than the chance of land in a less sought-after area.
Investment in land - clauses that you did not think to include in your considerations
The field of land thawing is quite complicated for those who are not familiar with it. Among other things, it is worth examining whether it is privately owned land, or alternatively land belonging to the Israel Land Administration. What do we mean? Well, if the land belongs to the Israel Land Administration, it is necessary to examine the lease. The idea is to make sure that during the thawing, you will receive alternative land with the same value, in exchange for land that has returned to the state.
8. Match between goal and investment
Land investment can lead to high profits in a relatively short period of time and can lead to much higher profits in a good few years. Hence, it is important to understand whether the investment is intended for the benefit of children who are still young, or alternatively, whether it is intended to be used by you (the expectation is to see profits within a relatively short period of time). Depending on the answer to this question, you can decide whether it is right to invest in land that is in a more, or less, advanced thawing process. If you enjoy a liquid financial situation, then it is advisable to invest in a long-term deal.