Basic Things To Analyse Before Investing in Land

So you’ve realized you are adult enough to have a place that you self-own, what’s next? Do you want to buy an apartment, or do you want to level up as an adult and just buy land outright? It seems a little too much work, but consider the upside: you’ll forever be the person who owns land! How grown up is that? It’s the best thing ever. You can grow food on it, build a house on it, and lend it out if you want to. It is also the best conversation piece in the world. “I have my own land.” is the deux-ex- machina of all conversation starters.

Ok, now that you know that land is what you want to buy, there are few things you need to figure out.

1. Financial planning: Do you have enough money for it, and if not, can you get a loan for it? Many banks give you a good deal on housing loans, especially if you are female. I’d recommend sitting down with an executive of the local branch of any major national bank, and getting solid advice. Figure out a good payment plan if you do decide to go the loan route. There is no worse feeling in the world than realizing that you have to sell your land in order to pay the loan that you took out for buying it.

2. Accounting for pitfalls: Make sure you have your priorities right. Do not forget to account for what I call “what the hell!” incidents while making your financial plan. Those include hospital bills, sudden cash flow problems, sudden increase on regular bills, and unpredictable occurrences. You would also need to understand that buying a piece of land is a permanent change in lifestyle, unless you have a bunch of cash to buy it outright without a loan. In which case, you have all our respect sir/ma’am, continue being as fabulous as you are.

3. It’s all in the location! : Decide where your prospective land would be. Do you want a piece of land in commercial area? Rural area? Semi-developed area? We ask because your perspective would have to change accordingly. The same amount of money has very different buying power in different settings. Consider all the options, and make a good choice according to your needs. Do not just buy a bigger land in a remote area that you can’t access or assess, it would not serve you well. Buy it where you can look after it and use it, even if it is smaller. Check out our next article for more on this.

Well, that’s the best basic advice that we can give you. Good luck, and may you find the best land possible. Keep watching this space for more information, and you can write to us for further information.