Is it profitable to buy land? When investing in urban land, you must choose the ideal plot for your project. You must also take into account a series of conditions when buying your building land. Likewise, knowing the difference between urban and developable land... Whether you want to enter the world of real estate investment. As if you are looking for the ideal plot for the self-promotion of your home.
Although the objective of your building can be very varied, we will focus on the acquisition of land for residential buildings for Investment in urban land. So let's see the conditions that we discussed to choose the ideal plot:
Condition 1: choose the correct type of floor
Urban land and developable land… What is the difference between urban and developable land?
They are not the same at all. And then what is the difference?
To begin with, urban land meets one of these three casuistries:
• It has road access, a water supply and evacuation network, and electricity.
• It is part of a solid urban fabric.
• It is made according to the general planning of the municipality.
For its part, developable land or land has a more complex casuistry and only in some cases can it be converted more or less agilely into urban land.
Conditions that we will summarize in that "someone" will have done the work for you before, be it another builder, local authorities... Otherwise you will have to wait, and pay. And let's not forget rustic land, which depends on each autonomous community and its legislation on urbanization in this type of land. So, to begin with, you should focus on investing in urban land, whether it is a plot or a building plot.
But weren't plots and plots the same thing?
No, they are different concepts. although in general and in this same article we talk about a plot as a portion of land prepared and authorized to build. At a legal level they are not the same, and this is the second point to take into account when acquiring land to build your house.
We have said that an urban land is one that can be built, and a plot is a space of urban land (or urban land) that meets the minimum conditions (or not) to be urbanized. In this case we will be talking about a building plot. To understand each other, a plot is that farm in demolition between two semi-detached houses or on a street that you often see in your city or town. For its part, a parcel is a portion of land (land) located within a larger piece of land, suitable or not for residential use, which for our purpose, would be another way of calling the urban lot (or land). Of course, in the case of plots, the need to confirm their buildability will be even more important. Plots could be, for example, that part of the town, urbanization or peripheral area of the city that is still empty with an extension of segmented land ready for sale and construction. They may be on a hill, on the outskirts, in that area that has been fenced off for twenty years... Now we understand each other, right? ;)
Is it profitable to buy land?
When investing in urban land, you must choose the ideal plot for your project. You must also take into account a series of conditions when buying your building land. Especially if you want to enter the world of real estate investment. So, we will start from the idea that, in order for your land to be truly profitable, it must be, above all, urban land, and you will be able to dedicate yourself in a first phase to request your building permit. You will have to do that if making sure that this land is free of urban charges before buying it, being up to date with payments or not can lead to a nasty initial economic charge that you had not counted on.
As you can see, having the administrative information and local building policies is extremely important to choose the most profitable land to build your project. You save already in the beginning in time and money. A fact that you can increase even more if you decide on self-promotion in the construction of your home.
Condition 2: the ideal location of your building plot
When it comes to how to choose the ideal plot for the perfect match between your land and your buyer that we mentioned, you must find the ideal location that really responds to the needs of your clients. As in the already built products, the main interest of the floor is its location. Especially if you are carrying out a transaction: buy urban land to get profitability. And it is that the human factor is here and now more important than ever. At this time still a pandemic, the world has turned to a total overhaul of your home. From the small reform to the direct change of residence, if not of population.
We would not support another confinement in a closed space, with noise, and without light. This brief summary is one of the main concerns of users looking for a new home, whether new or second-hand. And be careful, because sometimes a home renovation project is a more than likely forecast for them. And the reason is simple: it is my house, it must be as I want and for what I need.
So, if you cannot respond to this demand, your project will never be profitable.
Condition 3: Types of construction: vertically or horizontally?
We will also distinguish here two types of construction: the vertical buy-to-rent investment and the promotion of single-family homes. As you already know, the less surface area, the greater the risk of vertical construction, especially important in the case of single-family homes, where the general opinion of users here tells us that the fewer stairs your home has, the better. And of course this type of construction will be carried out on plots within or close to important urban centers.
Here again we come across the simple daily reality. A reality that gained strength in the post-pandemic world: a large plot also allows us the option of building a large garden, swimming pool and other spaces in greater demand. Especially if our plot is located inland, far from the sea... Geography is another of the variables to take into account: fashions change and what was in vogue yesterday is now in the past.
And the final benefit? As you will remember at the beginning of this article, we have discussed the savings that the type of soil and location means when choosing your ideal plot. Well, your construction can also bring you great savings in the short and long term if you opt for architecture for sustainable homes and the construction of sustainable homes. An adequate architecture studio like the one available at CovaFosca Constructora can lead you to apply the most innovative sustainable construction techniques.
A little bonus...
To finish, and with a bit of humor, let's see now for what reasons an individual may want, at this time, to invest in urban land. There are many reasons why a person wants to invest in the purchase of urban land, but let's see the most common ones, don't forget to comment on the post if you feel identified ;)
CASE 1: You have never been inherited land and you have the thorn in it.
In this country we have internalized the false belief that only large real estate developers invest in the purchase of land to build on. And not houses, not resorts, hotel parks, large offices... But this is not Hollywood! The main buyer of urban land is currently the private investor. And here is Safire Real Estate to help you, whether it is creating a home through the self-promotion system. Or directly managing the sale of this land so that you do not have to take care of anything. And get the benefit you've been dreaming of for years.
CASE 2: You want to build your house on that beautiful piece of land, but you are terrified of not even knowing how to build a house. And there are already three lots that another more daring buyer has stayed.
There are several construction options but the most advantageous for the average homeowner is self-promotion. It is a modality in which the owner self-finances each phase of construction of the house, it is cheaper for him and more reassuring, since he can control first-hand the evolution of the works. Because like everything in life, if you want to win, you will have to take risks.
CASE 3: You want to invest in the sale of land, but you do not want your money to be stolen.
CASE 4: You would like to be the owner and live by renting your properties but you think that no one can achieve that.
But why not start at the beginning? With good advice, you can grow little by little until you become a successful owner who perfectly controls your finances. And that is achieved with knowledge, patience and experience.
Here we solve two answers in one. First of all, we will specify that if you want to join the lucrative trend of buy to rent (click on the link if you have not done so before) you can, and also, you can also negotiate an exchange for one of the apartments, with which you can reduce the price purchase offering the owner of the land one of the apartments.
The second answer answers the question: Why not try building for rent? Vertical construction is easier to obtain in a country in which more than two million rental apartments are needed, but also, although the post-pandemic trend continues to be to emigrate from the city, the truth is that a rental apartment is still the solution of almost half of the Spaniards. A fact to take into account.
We hope this article bites you. Call us, we'll tell you everything and we'll help you make the best investment in urban land: as real estate agents and developers we have the necessary information, analysis and statistics to make your real estate investment a success. Or if it is better to buy a part of a plot, and build your new construction house like the ones you will find in the promotions section of our website.
Do you want to buy urban land? Look here our land for sale in Girona.