If you are looking to develop a piece of land, there is certainly potential for a lucrative return on your investment. Owning property is one of the best investments you can make, as it will likely only appreciate in value. Not all investments are good, though, and all developers should be cautious before signing any paperwork to finalize a deal. There are a few key features you should look for first.
Consider the following three factors when you are in the market for an investment property. Whether you are a first-time investor or a seasoned veteran, you can benefit from paying attention to the following factors when it comes to buying an investment property.
Location, location, location
One of the most oft-repeated phrases in real estate is “location, location, location.” Simply put, this mantra asserts that location is, indeed, the most important factor to consider when it comes to investing in real estate. You can change almost anything about a property, but you cannot change its location. Make this the first priority of your search and focus on particularly hot areas.
Effort required to develop
In addition to considering the location of a property, you should consider how much effort will be necessary to develop it to the point of being profitable. If you are looking at apartment complexes that were built in the ’60s, for example, you should verify whether they still contain lead paint. An expense like this can majorly dent your budget and make it far less feasible to develop.
Comparative properties
Lastly, be sure to look at other properties in the same area and price range to get an idea of the overall value of your property. If your property seems to be more expensive, you might be able to negotiate a better selling price, or you may simply want to look for a property that will be a better value. Getting a good deal is an important part of the investing and developing process.
