Many sees undeveloped plots of land as squandering resources, however specialists say with legitimate estimate and great area, exhaust land can end up being preferable cash turning resources over structures.
The owner of an undeveloped piece of land located on a choice area of a city’s business centre, probably had notions of building an eye-catching residential of commercial building in the choice area. It hosts the rich and mighty and many financial institutions. But lack of adequate cash frustrated his dream of a glitzy structure.
Decided not to give the land a chance to lie unused and depending on insightful direction, the proprietor selected to rent the land to a few associations searching for any accessible space to be utilized as a vehicle stopping office. A savvy move that has since paid off as organizations in the area are seriously strapped for parking spot.
Today, he is probably thanking his advisers and his luck because the empty piece of land has now turned a money-spinner to the envy of other landlords in the area who have built up their own plots.
Any undeveloped piece of land in a commercial area for instance, could turn out to be a good investment option for the owner due to the dearth of parking spaces in the built-up city.
A landowner in such high-brow area may generate substantial sums yearly as the lease fee for a plot of land being used as a car park. This translates to a sound investment.
The story of a retiree who owns a plot of land on another part of the state is not any different. The land became his single most important investment after he retired from his regular job. Not able to raise enough money to develop the land into a mansion, he drilled a borehole on a section of the land and used the other as a wash shop with minimal level of investment and development.
Today, the venture is the main economic backbone of his family and a group of young men who earn their living directly from car wash shop.
Investment analysts have the opinion that many people live in penury, while having assets that are un-utilized. They reason that with a little foresight and planning, such assets could prove to be good sources of sustenance. An undeveloped piece of land remains a wasting asset if no deliberate attempt is made to turn it into something useful.
The first step towards making it work for the owner is to properly demarcate the land by subjecting it to a survey, which will properly identify it and distinguish it from other plots in the neighbourhood.
Thereafter, it is important to do the necessary documentation from the appropriate government agencies in order to register an interest in the piece of land. This is because a state guaranteed land has more legal and economic weight.
Once these have been done, they will give additional value to the land. In order to get more, it is important to fence up the land, do some leveling in case the topography is not too good, and do general landscaping.
Once you are able to do these, you have already added value to the land before you even develop any structure on it.
Taking some lithe actions could turn around the fortunes of the owners of empty pieces of land that are otherwise wasting away.
The location of the land plays an important role in determining the type of improvement that will be required. For instance, if the land is in a marshy area, it may be important to first conduct a soil investigation.
For landowners in rural areas where little commercial activities take place can still turn their undeveloped land into money-spinners. Agricultural activities rank highest among the possible uses.
For those inclined to this line of investment, certain crops bring good returns. For instance, cassava is turning out to be a major foreign exchange earner. Vegetables too are in high demand all year round. Fish farming is becoming increasingly popular and any small pieces of land may just be all that is required.
Some people have found another profitable use for their undeveloped piece of land by leasing them out to artisans like auto mechanics and allied professionals. This is becoming increasing attractive because of the daily ejection of artisans from their established places of business.
But before entering into any lease agreement with any artisan group both parties must utilize the services of professionals like lawyers, land surveyors and estate valuers in order to avoid problems later.
Depending on the location, you can make millions on your undeveloped land and you may not even want to develop it again because you may make more than double of what you would have made from rental income on the building.
The basic thing in making money from undeveloped parcels of land and to continue to make it attractive to potential users is to make it clean and presentable, then invest and rake in the dividends.