BENEFITS OF BUYING RAW LAND

March 04, 2021

What is Raw Land?

Raw Land is a plot of land that has not been developed or prepared for construction. In this article, we will attempt to highlight the benefits of buying raw land.

Vision

Buying raw land enables you to exercise your vision in the construction. You can build the house you want with your preferred styles, design and architectural vision.

In the event that you wish to live on the property, you get the chance to design everything about your residence.

If you wish to develop your land into a commercial property, you get to decide everything about it.

Flexibility to build or hold

With raw land, you don’t have to develop the property right away. You can buy and hold. This means that after you acquire the property, you can bid your time before deciding what to do with it.

You can also choose to develop the property right away. Either into a residential plot or into a commercial one.

You can buy and hold the property and wait for a time where the market prices are up to sell. The real estate market can fluctuate from time to time.

Potential to Increase Value

The price of land has the potential to increase exponentially over a period of time. This option gives you the opportunities to;

a) Subdivide into smaller plots to increase its value.

b) Buy and hold, wait for the value to increase.

c) Lease out to collect rent, either short-term or long-term.

d) Develop it to increase value

Potential for passive income

Buying raw land gives you the potential for earning passive income as you have the freedom to rent or lease the land before you develop it

In the current Kenyan economy, there are huge opportunities in this.

Raw land can be used as a Car wash, a mobile restaurant, a storage yard, a playing field or even as a parking lot.

Before you invest in raw land however, there are thing you need to consider. For instance,

1. Location of the plot. This is the most important aspect when it comes to property investment. Location is tied to many other important factors to consider, for instance: Security, Accessibility, ambiance and general environment.

2. Utilities available. This includes: electricity, water and sewage connections.

3. History of the plot. You need to conduct a title search with the Ministry of Lands to verify ownership of the land.

In order to be absolutely sure that investing in raw land is good for you, you need to evaluate the following:

1. Your risk appetite- As with any investment, you expose yourself to risk when you invest in raw land. While land is one of the most predictable investments, there are somethings that are out of your control.

2. Financial Stability- Buying raw land is a massive financial obligation. Unlike stocks and rental property, the returns in raw land are minimal, if any. You must evaluate where you stand financially and whether you can withstand an investment of that capacity.

In summary, investing in raw land inherently brings about risks. One must be adequately prepared to undertake an investment of that magnitude.

Engage with us on:

Email: info@real.co.ke

Website:www.real.co.ke

Call us on: 0738400400 or 0722341111

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