Buying land can be seen as a stagnant investment by few. However, if you compare investing in land with other investments that you want to make, you will know that investing in land is one of the best decisions you have made in your life. Also, it is a safe investment.

Buying land as an investment requires a deep understanding of the growth potential of the place you buy in. Buying next to a highway will be excellent. However, are you buying land in a saturated market? Or are you buying land in a growing market? Many of us may know the I-635 and I-75 highway flyovers under construction. In the same way, when you buy land, you should see the proposals of growth for highways and infrastructure projects. Study the trends in business growth and migration. Taxation policy for businesses may be something you want to observe.

Land is an excellent investment. Not only does it ensure security, it also ensures growth. It maximizes utility and has a greater return on investment than stocks or a Certificate of Deposit (CD). Should you want to build a house on your land, you can do so. You can sell it to a developer should there be an increase in demand for the property due to mobility of workforce or people into the area.

Let us examine investment in land by looking at a few other investment options. If you buy a CD, the return on investment can be lower than the inflation rate. So, you may be basically losing money by investing in a CD. It may be better to pay more money to your payment and ensure that it applies to the principal. Now, regarding investing in stocks, there are very few stocks that perform exceedingly well. Many stocks under perform or do not give the return on investment that one hopes for. Unless you invest in a startup with excellent growth potential, it is unlikely to have a return on investment that is more than the return on investment on a land investment.

If you consider the ratio of land/person, the ratio shows that the land per person is reducing every day. Population growth in the last century outgrew the population growth in the century preceding it. Land is limited in supply. So, it is valuable and ensures a better return on your investment. Even if it loses value, you will have the property and slowly it will regain its value. With all the reasons listed above, buying land is an excellent investment.

There are many factors which will influence and affect land values and these factors may fluctuate from time to time. For anyone who is thinking about land investment it is very important that you know what these factors are and how they may affect land values. You will have an idea of what the land is presently valued and what the potential future value is likely to be.

The keyword here is future and someone who is able to speculate well what the prices of the land will be in future will always be on the gainers side. Here are 6 things that affect land values:

Scarcity

The basic principles here remains the same, that something which is tradable and is available in plenty have lesser value than something which is available in less volume. This factor is very significant and for e.g. we can see that the prices in the prime locations of any city, town or just any region is always higher than prices in the suburbs. This is because the prime locations has much more facilities and amenities which are available and due to which many people want to move over there and set up their business or buy a home there. This increases the demand where as the prices in the suburbs and outskirts are low because land is scarce in the cities and the opportunities are less and lifestyle too is not as good as towns. Here if you are able to buy land that is scarce at a reasonable price you will be able to make a profit for selling later at a higher price.

Arability

There are many land areas which are very fertile and cultivable. Places which are fertile and are cultivable are valued very high than non fertile areas.. If you purchase fertile land, you can easily sell it in the future as arable land is always in demand especially for agriculture. Due to this great demand for arable land the price that can be had is usually good.

Zoning Issues

There are local authorities that will place certain restriction on the kind of development that can be done on the land. Certain areas are zoned for certain kinds of development and amenities. Every land owner must apply for permission from the authorities to do any kind of development on any land. Permission is granted or denied based on zoning laws and other considerations and these all will affect the land price.

Development

The land value is also greatly affected by the kinds of development that takes place on it. If a very successful business is developed on it then you can include it in the overall value of the land. You can also choose to sell off the business while still retaining the property. This can help in earn profit from two sources. Thus, profit is coming from selling the business for a good profit and also a regular fixed income from the use of the land by the new business owner.

Taxes

The land value is also very much dependent on the area it is located in and the taxes that are attached to it. If the land tax is considerably high, then it might be a very god reason for the potential buyer to make another choice. Different states have different tax rates attached to land and depending on the type of land there may be a different tax attached. Also the size of the land will affect the amount of tax paid. Thus the larger the land the more tax will be paid and vice versa. Also the land to be invested in may have tax arrears that must be paid up before any transfer of title can occur.

Security

The safety of the area in which the land as located, is an important factor in determining land value. If the area is one that is crime riddled then the value will be lower. The safer the area the land is located in, the more likely that the land investment can produce positive returns over the long term.

When making a land investment these factors that affect land values are to be seriously considered and steps taken to reduce or eliminate their effects.

A recent survey shows that over 70% of middle class and low-end real estate investors see Ikorodu as a veritable destination in Lagos. Unlike Badagry, Ikorodu is already witnessing what can be considered an impressive rate of development in terms of real estate investments.

Located on the eastern senatorial district, Ikorodu is one of the fastest emerging property markets in Lagos State. About 30 minutes derive from Ojota Bus Stop, this location serves as a gateway between Lagos and Ogun States. Commuters who avoid the Lagos-Ibadan expressway as a result of the occasional traffic grid-lock on the road use the Lagos-Ikorodu road as an alternative route to Ogun State. Ikorodu is about 35 minutes drive to Sagamu in Ogun State.

Development in Ikorodu is rapid as the location is already witnessing a population density evidenced by the heavy traffic situation on the Lagos-Ikorodu road. Popular areas in Ikorodu where development is almost at it’s peak are Agric, Ogoloto, Isawu, Ojokoro, Odogunyan, Igbogbo, Igbo-Olomu and Ijede ( location of the Lagos State Mini Water dam power plant ).

Ikorodu is blessed with many estates, both government owned and commercial. Some of these estates are: T.O.S. Benson Estate, Apeke Estate, Ojokoro Village Estate, Alliance Housing Estate, His Glory Estate, HallMark Estate, Jubilee Low Cost Housing Estate, Toma Estate (Owutu Housing Scheme) etc.

Infrastructural facilities in Ikorodu are gradually being improved upon by the Lagos State Government as previously old, yet to be tarred roads are now receiving the necessary attention.

Water supply to most parts of the town is through privately dug wells and boreholes.

Risk management planning is a key to successful property development. Risk Management, the science of analyzing the risk areas as they have the greatest impact allows property investors assign resources appropriately and/or assess feasibility of property development projects.

A clear understanding of the development process and the ability to quantify risk areas will provide investors with the competitive advantage they need to emerge from the pack in the new economy.

Listed below is an outline of the levels of risk management due diligence key to property development and property planning.

Level 1: Impacts Assessment

1.1 Industry Standards Assessment

Analytical assessment enables property owners to compare existing facilities with business and industry standards. The evaluation of industry standards can be used as a baseline for planning physical building projects.

1.2 Socioeconomic Impacts Assessment

Analytical assessment enables property owners to determine status of socioeconomic impacts on existing and planned future facilities with respect to changes in the business environment. The assessment can be used to help identify social, cultural and economic impacts for planning physical building projects.

1.3 Operational Needs Assessment

Inclusive process enables property owners to identify general business and operational needs which will be used as a baseline for planning physical building projects.

1.4 Condition Assessment (Existing Properties)

Enables existing property owners to better manage their facilities and establish budgets for maintenance and repair.

1.5 Identification of Strategic Planning Objectives

Enables owners to identify key programming needs as it relates to planning for future site and building projects.

Level 2: Concept Development

2.1 Conceptual Site/Campus Planning

Enables owners to assess investment risk based on how well the programmed site elements fit and function on the available site.

2.2 Conceptual Building Planning

Enables owners to assess investment risk based on how well the programmed building elements function in a basic building configuration as it is located on the proposed site.

2.3 Conceptual Phasing Plan

Enables owners to review long term and short term project phasing and the impacts on facility criteria such as operations, capital expense, projected business growth etc.

Level 3: Environmental Plan

3.1 Introduction to Sustainable Building Strategies

Enables property owners to consider different environmentally conscious planning strategies and assess impact on long term building costs.

3.2 Environmental Evaluation

Enables property owners to have conceptual environmental survey of existing facilities to be used as a reference point in future planning projects.

3.3 Sustainable Building Recommendations

Propose conceptual environmental building strategies appropriate as updates to the existing facilities.

Level 4: Risk Management Plan

4.1 Review of Surveys and Reports

Enables owners to have quick check technical evaluation of a site prior to investing extensive time or resources.

4.2 Zoning Analysis

Enables property owners to assess investment risk based on how well the proposed site plan and building meet local planning and zoning requirements.

4.3 Building Code Analysis

Enables owners to assess investment risk based on impacts of current building codes and local amendments.

4.4 Risk Management Scheduling

Enables owners to assess overall investment risk as it relates to project timing and requirement for project funding.

4.5 Cost Estimating

Enables owners to evaluate investment risk as it is impacted by overall project cost and provides comprehensive figure for construction related costs to be incorporated into project financial analysis.

Level 5: Implementation Plan

5.1 Long Range Physical Planning Strategy

Executive summary format enables property owners to have a concise integrated guide for long range planning of physical facilities.

5.2 Short Term Physical Planning Strategy

Executive summary format enables property owners to have a concise integrated guide for short term planning of physical facilities.

Make a plan. Have a plan. You’ll be glad you did!

Of all of the legal agreements that you will have to go over in your lifetime, a real estate development agreement is one of the longest and one of the most complicated. Many of the other forms we’ve looked at here are short; usually one or two pages and they can be filled out and read over in only a few minutes. With a real estate development agreement, you will likely need hours to wade through one of these dense, 10-50 page documents. Let’s take a look at what a real estate development agreement is and why they are so lengthy.

A real estate development agreement is just that, an agreement to develop a parcel of land for personal or commercial use. The agreement can be between an individual and a construction company, a commercial builder and a city or town, a city and town and a retail business or other combinations of the above. Some real estate development agreements between large companies like Wal-Mart and a city or between a company that will be dealing with hazardous chemicals, like a gas station and a city, can be extremely long as they need to cover any eventuality that could arise during building or later on if there is an accident.

The typical real estate development agreement starts off with simple definitions of who is involved with the agreement, the date and where the piece of property that is scheduled for development is. The agreement will also spell out the municipality that is in charge of overseeing the development. The next part of the contract is often the “Witnessed” section that lists all of the necessary steps the builder has had to complete up to this point to have the development agreement approved by the city. The city will make sure that the area you’ve chosen to build on is properly zoned for the type of building you intend to do and they will also check that you’ve submitted a development plan, which is different than this agreement, to the city in advance of this form. Once those steps are met, the meat of the contract is spelled out.

The first section is the definitions that simply spell out what each term used in the contract refers to. For example, the city or builder will likely define what “total cost” means so it can be used throughout the contract. If it is a simple home building contract, there will only be two or three definitions, if the contract is for commercial property, there could be dozens.

Next, the development plan sketches out the project. This section is often short and simply lays down the ground rules of the build, such as the time frame, property limits and so on. The improvements section can be quite long as it outlines all of the improvements this development will do with the city like improving sewer lines that it hooks up to.

The final sections of the contract go over deadlines for building and things like landscaping rules, parking rules and what rules are in place for further building on that parcel of land. Overall, a real estate development agreement is often as complicated as your plan is: simple for homes, complicated for commercial properties.

1. Introduction

Given the wide network of the MRT system in Singapore and rate of building development, the potential of land development along MRT lines is very high. In order to carry out such development, it is very common to see building structures and basement structures adjoining to or directly above the existing MRT lines.

Such construction must be carried out in a manner according to the Code of Practice to avoid detrimental effects on the sensitive MRT structures. It is important to have proper and adequate precaution/ protection measures incorporated in the design and construction works to avoid such effects.

2. Safety and Protection

2.1 Code of Practice for Railway Protection

New developments that are taking place in close proximity to existing MRT lines are subjected to the approval of Land Transport Authority (LTA). Full compliance of the technical requirements must be achieved as specified in the Code of Practice for Railway Protection. The Code requires the developers to ensure that the movement of the MRT structures is limited to the following requirements:

a)       Movement in any direction limited to 15mm;

b)       Rotation of the tracks limited to 1:1666 in any plane.

However, there are cases where the allowable limits may be adjusted according to the site conditions (Doran, et al, 2000). Special care has to be taken when undertaking installation of piles and diaphragm walls with the 1st and 2nd Reserve Lines.

 Safety measures must be adequately in place especially during the installation of piles and diaphragm walls within the 1st and 2nd Reserve Line of the MRT structure. Usage of permanent casings can minimize the potential for any imposed stress on the MRT structure for installation of piles and diaphragm walls.

2.2 Planning/ Design Consideration

Necessary permits from LTA must be approved before any new development in close proximity to existing MRT structures can take place. The various documents to be submitted to LTA for approval includes the following:

a)       Method Statement of Work;

b)       Instrumentation Proposal;

c)       Review Levels for various instruments.

All documents are to be submitted by the Qualified Person (QP) to LTA before the undertaking of any construction of such nature. Site activities are strictly allowed to proceed after approval by LTA. For construction of underground tunnels, exploration, foundation works and development work which would involve the use of a crane, an application for the exemption of the provisions under the Rapid Transit Systems (Railway Protection, Restricted Activities) Regulations* shall be made by the qualified person in writing.

LTA will approve the developmental proposal in writing if the following requirements are compiled with:

a)       Qualified person has complied with the requirements of Clauses 4.2 to 4.5 of the “Code of Practice for Railway Protection” and that all items submitted are found to be in order;

b)       Qualified persons has fully demonstrated and confirmed that it is feasible for the development works to fully meet the technical requirements of Section 10 to 12 of the “Code of Practice for Railway Protection”.

*Application for such exemption can be made using FORM LTA DBC RAIL EXEMPT which is available in the “Guide To Carrying Restricted Activities within Railway Protection and Safety Zones”.

3. Protective Measures

Protective measures are essential when carrying out construction work in close proximity to the MRT structures. The protective measures can include the following:

a)       Rigid retaining structures (e.g. diaphragm walls);

b)       Proper construction methods (e.g. top down construction methods);

c)       Good water tight retaining structures;

d)       Water recharging wells;

e)       Soil improvement techniques (e.g. jet grout);

f)        Debonding of piles and diaphragm walls in the 1st and 2nd Reserves;

g)       Silent Piler.

Instrumentation are also necessary to monitor the changes that might affect the tunnels during the construction works.

3. Conclusions

1)       Good planning and control system consisting of Codes, Guidelines and proper procedures are essential in ensuring the successful execution of new developments near existing MRT structures and maintaining public safety. The establishment of the allowable limits by local authorities based on design conditions and field performance provide a useful guide to the engineers/contractors of these critical projects.

2)       Construction activities within the Railway Protection Zone shall be regularized and controlled by the Code of Practice for and executed under the supervision of competent engineers for minimizing detrimental effects on the existing MRT structures.

3)       The effects of construction on the existing MRT structures hall be properly evaluated by necessary analyses in the design and verified by suitable instrumentation system during construction.

4)       The application of suitable protective measures, e.g. rigid retaining system, soil improvement techniques, special equipment and advanced automatic monitoring systems are fond with significant contribution to the safety control of underground MRT structures in close proximity to construction sites in view of its sensitivity and restricted accessibility. However, proper interpretation of the instrument readings, application of good engineering judgment and supervision by competent geotechnical engineers are needed.

References

1)       Land Transport Authority 2000, Code of Practice for Railway Protection, Singapore

2)       S.K.Kong, Moh and Associate Pte Ltd, Safety Control for Development Adjacent to Existing MRT Structures , Singapore

3)       Doran S.R., Wood T, Tham S.K., Copsey J.P. Shirlaw J.N. & Wen D. 2000, The Assessment of Limits for The Movment of Subway Tunnels and Trackworks Due to Adjacent Construction. Proc International Conference On Tunneling and Underground Structures 26 – 29 November, Singapore

Worthwhile investments naturally require careful analysis. Thus purchasing high country raw undeveloped Colorado, New Mexico, or Arizona land for sale is no exception. We believe that undeveloped land investment is one of the better ways to increase your financial holdings, but doing your research and due diligence remains vital to your success.

Here are a few questions to ask yourself about, for instance, Arizona land for sale.

1. What is the reason for this raw undeveloped land investment in the Arizona land for sale High Country?

This will determine the kind of Arizona land for sale you seek, its location, and price. For instance, you may plan invest in the Rim Country near Payson. You plan might be building a residential second home to escape the heat of the Valley of the Sun. Alternatively, you may want to buy Arizona land for sale in the high country only to hold the investment for a time as values continue to rise due to the many Californians moving in and paying California prices.

2. How can I get the information?

First, visit and become familiar with Arizona land for sale in the area, from Payson through Heber-Overgaard and Show Low-Pinetop to St Johns, Eagar and Alpine. While the fierce development may now be in the areas most readily reached from Phoenix and California, the entire region is likely to see major increases in land value in the next decade. Check the present and possible future zoning for the land to determine if your development idea will work with city and county plans, or to know what kind of value it might have should you want to sell to a future developer. Study the history, political and cultural make up of Gila, Navajo and Apache counties to understand just how they may react to the changes brought about by so many new residents.

3. How should you work with real estate professionals?

Do not choose just any agent. Raw and undeveloped Arizona land for sale investing is a real estate specialty, and you want to work with someone who is such a specialist and knows the likely future development of the area. I suggest that you work with several, compare their opinions and counsel. Even then, you may decide to buy directly from the owner rather than through an agency.

In the White Mountains, you will find a number of owners individually selling off their family property. These are often better deals than those offered through an agency. These are sometimes offered with owner financing.

You can talk to farmers and ranchers with Arizona land for sale. Be on the look out for tax sales and foreclosures, read the newspaper subdivision notices, research the Navajo and Apache county government websites, and generally immerse yourself in what is going on.

4. How do you choose a sub area?

Examine the rate of growth in Payson or Show Low versus outlying areas. The speed with which an area is developing will increase the speed of your appreciation, but you want to find the areas where prices of Arizona land for sale have not yet taken off.

5. How to finance it?

Although financing from banks on raw land is often not available, owner financing is often is. You will need a down payment. For agency-listed property, 25% or more is usually needed to cover the 10% agency fee and 3-4% closing cost. Buying directly from the owner allows you to negotiate more freely sometimes resulting in a nominal down payment.

Introduction

India is a fastest growing economy; industrial development is the back bone of any state. A large number of investments by overseas corporate are taking shape. Some of the corporate have presence in India, and plan for major expansions in other states, while the others are entering the Indian market as new players.

State governments

The state governments provide a wide range of incentives to industrial land buyers, to keep their interest alive. The incentives and promotions start with discounts on industrial land price, state tax and infrastructure benefits. Companies acquiring bulk land, keeping future expansion plans, they have an edge over the other buyers in terms of discounted land price. Some state governments are virtually competing against each other to attract these lucrative investments into their states.

Industrial land in open markets

Overseas corporations, who plan to set up industrial project in India for the first time, start shopping for industrial land in the local open markets. Some of the stumbling blocks faced by them are lack of knowledge on the local industrial land rules and regulations, transparency, credibility, and ownership of the land. Some property brokers, engaged lack basic working skills and policies on industrial development. This makes identification and acquisition of land a difficult process. Sale prices for industrial land in the open markets have un wanted strings attached, making little sense to the buyers. Industrial land may vary in pricing structure and command a premium on two major factors that is the location of the land and availability of options in that market.

Transfer of ownership

Identifying and buying an industrial land for a mega project is one part, transferring the property to the new ownership is a back breaking process. (Especially, if the land is acquired for the open market) Overseas nationals find themselves in a maze of rules and regulations while transferring the property and getting started. The costs of transfer of land and registration need to be calculated as this adds on to the capital expenditure.

Broker assistance

It is important to engage a good knowledgeable commercial broker. All brokers do not specialise in industrial land. It is very important to gauge your representative you hire; he should have the expertise to assist you at every step. Before short listing a broker, collect enough information through your own sources, about the local regulatory laws, price structures, and the practices. Your broker should correspond to your findings. He should guide you on the procedure and help you identify suitable sites. The broker should be able to give an analysis report on the local neighbourhood, in depth details of each site visited.

A quick visit to the local transferring and registration authority, should give a better view of the sale proceeding. A verification of the land records and status, ownership details etc can be cross checked.

For hundreds of years land investment has been used as a vehicle for making money but was often reserved for the rich. However, nowadays, with the emergence of new cheaper land markets and the ability to invest in small plots of land the market has been opened up to a whole new category of investors.

It is essential with land investment that people don’t get carried away with simply buying cheap land. Obviously a low-cost piece of land can seem appealing, however it is important to remember that your profit will only be made when selling the land and therefore there has to be some reason for the land to increase in value. A cheap land investment is great but if it has no reason to increase in price then how do you expect to make any profit?

So, with land investment there are a few important factors to consider when looking at a plot of land, no matter how large or small. The first to consider is obviously price. Is the land you are investing in worth the price today that is being asked? Secondly is how long you intend on holding your investment. You then need to compare that time with a realistic projection of what your land will be worth when you intend on exiting the investment. For example, if you only want to hold your land for 3 years but projections show that land values in that area are not likely to rise much for the next 5 years then you are investing in the wrong land investment!

More importantly you need to consider what makes your land investment so potentially profitable. Are you simply buying a cheap piece of land and hoping it will increase in value or have you done your homework? If you are investing in an area that has reason to increase in value fast then this is the true investment that brings big returns. So, look for factors that could contribute to this. For example, is your land inaccessible at the moment but that is likely to change over the next few years by the introduction of a new road, railway access or airline route? Maybe it’s cheap at the moment because the area is rather unpopulated or unappealing to tourists but the area is beginning to gain a growing amount of tourism each year and is looking to become a hot spot in the future?

Land investment can be very simple but the most simple thing is to forget the price you are paying and concentrate on what the cost you will sell at and how realistic it will be to achieve the returns you are looking for from your land investment. If you can’t see a reason why the land value would increase then you’re probably investing in something that will not give you the return you were hoping for.

If your land investment carries reasons for growth in the future then make sure you are paying the best price you can and take into account how other costs could affect your return. For example, a great priced piece of land is no longer a great priced piece of land if you have to add 60% to the price to cover legal costs, transfer fees and other associated land investment charges.

Land investment can be one of the easiest and most financially rewarding types of investment there is. The secret is to keep a cool head and select the right area by not looking at what makes the land good right now, but what makes the land look much better in the future!

Making money through investment in land can be a very healthy and almost sure profit earning venture. There are so many ways one can do it but only if you know how to do it properly. There are so many kinds of businesses one can start on his/her own land which can be helpful to them commercially as well as personally.

There are many land investors who are farmers and cultivators who used their land to harvest many kinds of food and raw products which are used locally in the market and personally as well. These products can be exported abroad as well and can be profitable enough if sold in the right markets. This local production of crops is beneficial as there is an export option as well as a local selling option. Agricultural land can also be leased for agricultural purposes. You can lease to a farmer or an entity that is involved in farming. The market for farm lands is growing as the demand for food increases.

One of the possible ways to make money involves growing hardwood timber as the supplies of hardwood are decreasing. Because of this the price of hardwood timber is increasing. If you choose to plant hardwood trees you will be reforesting and making a profit to boot!

One of the ways you can make money in land investing is to buy land at a reasonable cost and hold it until its value increases to a level where you will want to sell. You can also make money on the land by holding on to it and getting yourself a tenant. This tenant can earn you enough money to take care of things like the taxes associated with the land from the rent they pay you.

You can also choose to build on the land. It is a profitable business to build houses, apartments, and commercial buildings on the land and rent them out or sell them once they are completed. With the buoyancy in the real estate market it will not be too difficult to find clients to rent or sell to. Once your rental rates are reasonable you will make good money. If you choose to sell you may have to hold on to the building depending on what is happening in the marketplace.

When you borrow money to invest in land and make your mortgage payments the equity in the land grows. Once your equity grows then so does your net worth. With this net worth you have the option of borrowing more money to invest in other properties.

If you have invested in, or are thinking about investing in commercial or residential land you can do some capital improvements to help earn you some money. By simply adding certain features such as a roads or connections for utilities you can greatly improve the attractiveness of the land to potential buyers and be able to ask for more money when you decide to sell your investment. You can also make money leasing the land to developers for a period of years.

If a good amount of investment land is available then a person can rotate his money by purchasing and selling it out within the intervals of a few years as the lands prices keeps on increasing every year. A person can do construction and promotion of a building on the land which is available and sell the flats outright or give it on rent, whichever seems to be more beneficial to the person according to the area as well as the local market trend.

In some states when land is invested in there are certain tax breaks that become available to the investor. This is so if the land is used for certain types of purposes. Thus you can get tax deductions and other types of government tax benefits. This will help to increase the land equity.

If your land has any unique or interesting flora and fauna you can turn it into a sightseeing location and have visitors pay to explore the property. The same can be said for land with animals and birds on it.

There are many other ways that a land investor can make money from his investment. The key is to choose one that is in line with what your plans are for the land.