Owning land has always been a wise decision, especially if you have invested in commercial land in time. Your property is gaining more value day by day, this typically happens when the local real estate markets witnesses large scale development in your local neighborhood. A very famous saying by Mark Twain – Buy land, they’re not making it anymore.
Owning a commercial land
Owning land property and knowing the real value is important. Well planned and timed commercial investments would pay rich dividends in the future, making you richer and wealthier. As a land investor it is very important to view a wide horizon, keeping in mind the future developments that would take place in the local neighborhood. In a country like India, most of the commercial land is zoned and auctioned by the local government authorities; you could pick your choice and bid your offers, or keep your commercial real estate broker informed of your interest in commercial land investment. A good broker could offer you a lucrative land deal through second sales, you may be lucky to latch on to a land deal which is in a consolidated format with a good frontage along a national high way. Or has access, frontage of two major roads. Consolidated land formats could give you very high value returns in the future.
As a commercial property investor / owner you have a choice, which you can use to get higher returns on your investments. Property investors do not hold on to properties for a very long period of time, as they aim to get returns on their investments faster as possible, most of the investors exit during this stage. It is noticed large business houses and industrialist invest in commercial property, with a view to either sell it and gain profit margins or develop the commercial land and expand their business operations to the new locations, targeting a larger volume of customers to boost to their business.
Joint Venture Development
Commercial development also gives a steady cash flow to the owners / investors. You could still maintain the ownership of the land though a JD (joint development). There are real estate developers, private equity funds, investors who are more than willing to undertake a joint development on approved sites. The options can range from commercial offices, business & IT parks, strip malls, hospitals, resorts and motels and mixed use development of commercial and star rated hotels. Entering into a JD for a land owner is not very difficult and is commonly viewed now days, the developers are more than happy to partner with commercial land owners. This is a process where commercial real estate agents, legal consultants, property valuers etc work side by side to structure the joint venture, giving consideration to the viability and feasibility of a proposal.
Commercial or residential land is always a better property investment option than any other property format; land appreciates faster and gives you better and faster returns.