Thursday, September 20, 2012

. Trust me

Ways You Can Make Raw Land Your Most Stable Investment Holding
If you are an urban developer, buying undeveloped land in obscure parts of whatever nation you're main holdings are in may not seem logical. After all if you live in New Jersey (for instance) and your current market returns for condominiums are good, you may not want feel the need to diversify your portfolio to raw land like in New Mexico.But here is where the rubber meets the road; we often don't know what direction the urban markets will go because they are inherently linked to many micro economic factors in their surroundings. The little gem that is often missed when we look at raw land is its stability and relative independence from the happenings of the general economy IF you plan properly.So, here are three things you can do today to make your Raw land a stable investment with reasonable returns.BuildThis may sound patronisingly obvious but putting some semblance of a structure makes your raw land a little bit more valuable. The thing is,for some reason a lot of people never bother doing this cause they feel it would be an extra expense to have another home to maintain. But you need not build a house! You may build a barn where you can store equipment or a stable to keep animals(that other people can use and pay you for) or you can just go on and build a water tank of sorts. Any structure greatly makes your raw land a bit more valuable for would be buyers if you intention is to sell it eventually.Rezone (Legal help and advice should always be sought after for this)Zoning rights and laws change from state to state but the principle here is that by tweaking the zoning of your land you can do different stuff with it and its value can also be changed just by the magic wand of the law. You can change your land zoning from farming to commercial and be able to build a shopping mall for arguments' sake (greatly oversimplified). Now off course its never that easy, because each county has its own set of requirements on what is and isn't allowed, but am sure you get the principle; Change the legal dispensation of the land and you can potentially change the value of the land. A 300 acre farm is worth less than a 300 acre residential neighbourhood (all things being equal).FarmGood old fashioned farming is still a viable business in most countries and certainly the US. The beauty with it is you do not even have to be the farmer,you can lease your land to somebody who will pay you for using your land! Depending on the state you are in and whether or not this is your cup of tea, it is possible to segregate part of your land as a ranch or crop field or even have a ranch game reserve (if you so happen to be fortunate enough to have deer and other wild animals on your property). Trust me,Graham Harrell Jersey, having some kind of farming on your land improves its worth and probably could boost its earning potential on the spot so you don't have to buy hold and hope for something to happen later on. Your raw land can become a passive money spinner and you won't have to work over time for it either if you allow others to do it for you. Better still, farming generally doesn't die cause whether or not the economy is good, we all need to eat! So pegging your land to some farm activity and building a corporation around it reduces your vulnerability to the rigours of the urban fluctuations.
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