Not Just Location: Factors that can Affect the Value of Land for Sale
Everyone knows that location is the primary factor that determines land value. However, there are also many other things that affect how much a piece of land is worth. Below are just a couple of considerations to keep in mind if you intend to purchase land for sale in Brisbane.
Physical Features
Is the plot of land on a mountainside? While this area may be harder to develop, it can make for a desirable vacation home community because of the stunning views it can offer. As such, the physical features of the land can play a huge role in how valuable it can be.
Anyone can buy a flat piece of land, but very few plots of land have unique features such as a mountainside view, and this can determine both the buying price and expected return on investment.
Demand and Supply
Land is no different from any other commodity in that it’s also influenced by supply and demand. Hence, areas where a lot of development is ongoing tend to have higher land values than less developed areas. Of course, this doesn’t mean that you should immediately discount land in undeveloped areas—if you’re willing to create townships or business districts in that location, you stand to earn a tidy profit. After all, fortune favors the bold.
Planned Infrastructure
Investing in land requires no small amount of foresight. Yes, a certain vacant plot of land may seem like a bad purchase, but if you foresee that big infrastructure might be constructed nearby, you can buy the land cheap and see its value skyrocket after a new major highway or airport is completed.
Of course, be sure to perform due diligence, i.e. double check if the land is in a strategic location and verify the land valuation history of the area.
There’s no denying that buying is a huge investment, but it can also lead to great returns if you play your cards right. Luckily, you can increase your chances of success when buying land for sale in Brisbane by working with a trusted land sales agent that knows the local market inside out. With access to a wide inventory of available land, these companies serve as trusted partners to land investors.
Sources:
Factors affecting Land Value, PlanningTank.com
Factors Affecting Land Value, Sapling.com
