In countries like Pakistan, real estate is a very successful business. People are always on the lookout for purchasing land as an investment. This is a great activity as it creates room for profit. Although many people buy land with the intention of investment, some buy it for their personal use. It may be for building a house, a shop or whatever their need be. People who have been actively participating in the activity have a better understanding of it. However, for people who are getting involved in it for the first time, the task can seem daunting. In this blog we will talk about all the things you should consider when purchasing land.

Why buy land in the first place?

Before talking about other things, you should consider while buying land, lets talk about why buy it in the first place. Popular belief is that the only benefit of buying land is security. However, there are multiple other reasons as to why buying land is an excellent investment. The following reasons highlight the importance of land as an asset:

• Land is a tangible asset

You may have read it somewhere that land is a tangible asset. What does it mean when we say it is a tangible asset? When we talk about tangible assets, we refer to assets that exist physically. Land is an asset that exists physically i.e., can be seen, touched etc. This makes it an excellent choice over assets that are non-tangible.

• Land is a long-term asset

When we say land is a long-term asset, we talk about its integrity. Houses or other buildings are also good assets; however, they are not suitable for long-term holding purposes. That is mainly because they deteriorate over a period of time due to weather conditions. Land however remains unaffected. You can buy a piece of land, leave it for ten years and it will still remain the same. That is one of the key reasons why land retains its value much better than physical structures.

• Land does not depreciate

Unlike physical structures, land remains unaffected by weather conditions. No matter how hard the weather may be, land will retain its integrity. This means that irrespective of the environmental conditions, the land is not deteriorating. This is a great quality for a tangible asset to possess. Since land does not depreciate, it retains its monetary value irrespective of time. This way you can invest your money in land for as long as you want and still get profit when you sell it.

• The land is only in a limited quantity

Although there is an abundance of land in the world, the ever-growing population calls for more land. As more and more people look for buying a house or any other property, the available land shrinks in size. This number is especially declining in developed cities with less space. The problem is worse in cities that have horizontal growth patterns. This causes the land to become more valuable over the period of time.

• The land only requires a minimum amount of maintenance

With developed properties, several expenses occur over the course of time. This can be because of weather conditions or wear and tear caused over its life time. However, with land that is not the case. The land is going to remain the same value no matter how long it is left untouched. It only requires a minimum amount of maintenance to keep it clean and tidy. Apart from that, there are no other expenses tied with the land itself, which makes it a great investment avenue.

• The land does not have a lot of taxes to be paid

With developed properties, owners have to pay a lot of taxes over its lifetime. However, land does not come with all that. There is only a minimum amount of taxes that you have to pay when it comes to land. People who don’t want to be bothered with taxes should invest in land rather than houses. In countries like Pakistan, prices of real estate rise all the time. You are more likely to earn a good profit if you buy land rather than a house or any other developed property. The main reason being that it does not deteriorate and stay the same.

• The land attracts a higher resale value

Buying land is like purchasing a blank canvas. You can do with it as you like. Most people buy land for that sole reason. They can build whatever they like on it and however they like. Pre-built houses have one problem that they cannot be altered completely to your liking. Once a house is built, there is only so much you can change in it. However, with land that is not the case. If you are looking to buy a house of your dreams, it would be a better option to buy land and build it yourself. That way you have more freedom and can customize it according to your taste and likings.

These are some of the top reasons why you should buy land. They are applicable whether you plan to invest your money or build something over it. However, what things should you consider when buying land? If you go into the market with a bag full of money, chances of you getting what you paid for are thin. You need to be more specific about the land you are supposed to buy.

Things to consider while purchasing land

You cannot go in the market to buy the perfect land for yourself with just a budget in mind. When buying land, there are other things at play as well. If you take care of the following things, you are more likely to get a better deal:

•  Identify what purpose you are buying the land

Before you do anything, you first need to identify why you are buying the land. For example: do you wish to buy it for building a house? Or is it supposed to be for investment purposes? Etc. This way you can apply a filter over the number of options available to you. If properly identified, it will help you a lot in narrowing down your search procedure.

• Understand the market

One mistake people make is that they dive head first into the market without any research. When looking for land to buy, always make sure that you properly research the market. Make sure that you know about the rates at which a land is selling in different areas. Moreover, also note the dimensions of the land, the location of the area in which the land resides, etc. If you have a slim budget, you are advised to avoid big housing societies. That is because they tend to be a bit heavy on the pocket. Understanding the market properly helps you in making well informed decisions. Moreover, it is advised to conduct your own research instead of listening to other people. This gives you confidence that you are making the right decision.

• Devise a budget you would like to spend on the land

When going in the market for anything it is always necessary to make a budget. This way you know how much you can spend on the thing you’re in market for. Having correctly identified the purpose of your purchase will help you in budget making as well. For example: If you are supposed to build a house, you should include the estimated cost of building the house in your budget as well. This way you can know how much money you can spend on the land. This also comes in handy during the negotiating process.

Once you set up a budget, you should not go over it. That is because it can cause problems for you in future. There are many examples of unfinished projects that could not be completed due to lack of money. There are only so much facilities that you can buy. Make realistic budgets which can be fulfilled. A tip for making a good budget is, to not include all your money in your budget. Leave some extra money as savings to be used if need be. That will come in handy if you go over the budget by accident.

• Identify the shape and size of land you are looking for

Devising a budget will help you in identifying the size of your land. When looking for land to buy, you should make sure that you have the shape and size of the land in your mind. These two things are very important as they affect how your house will look. Some people buy corner triangular land for their houses, due to budget constraints but end up disliking their houses. Moreover, such land, properties have a lesser chance of selling due to their shapes. Thus, it is crucial that you know exactly what shape and size of land to buy before you go in the market. Apart from budget, market survey will come in handy to help you determine the size of your land.

• Survey the area you want to buy your land in

Land prices can vary from area to area. For example: if you’re are looking in a highly developed society you will get higher prices. On the contrary, a mildly developed society will not cost as you much as the latter. Inside the societies, there can be multiple sub areas with separate functioning sectors. They usually have their own facilities for example: a market, mosque, etc. Moreover, you will have a much better living experience if you have such facilities close by. Thus, it is important to carry out an in-depth survey of the area. Land that is nearby such facilities is also usually a bit expensive comparatively. Due to the ease of access, such land is easier to sell even for higher rates.

• Buy land in close reach of your daily commuted areas

If you have to commute to a place daily for example: for office purposes, etc., having a place nearby will be more beneficial. You may find land in a far-fetched area; however, it will contribute to a painful daily experience. Not only will the commute be tiring but will also end up costing you a lot of money. Money that can otherwise be spent elsewhere. Therefore, this is also an important thing to note.

• Get the land you are interested in properly surveyed

Before buying the land you are interested in, make sure to get it surveyed. This goes a long way and can save you a lot of money and head ache. Consider for a minute that you buy a piece of land with filled mud. It will not be suitable for building anything on it as it is not properly bonded to the ground. Ever wonder how a house shifts from its original position after a rain spell? Well, the answer is filled mud. Land surveys help in identifying such things. They contain a series of tests such as soil tests etc. This can help you in the long run and save you a ton of money.

• Hire a good real estate agent

When looking for a real estate to buy, getting a good real estate agent makes the process much smooth. Instead of spending tons of time scouring the internet, you can just hire a real estate agent. They are beneficial because they have knowledge of all the available real estates in an area. Moreover, they are well connected which can help in the negotiation phase. Thus, getting a good real estate agent is a must.

• Title deed; one of the most important things

Title deeds are one of the most important things when it comes to a property. Make sure that the property you are looking for has a clean title deed i.e., it is not disputed. Having a property with disputed title deed can cause a lot of legal problems. Thus, always make sure to look into it.

• Check for local authorities’ approvals

It is always a good idea to get approvals from local authorities. If you don’t get approvals from them for any reason, consider your property wasted. Such properties don’t sell for good rates. Moreover, since you cannot build anything on them, they are technically wasted. Although it does not happen often, it can cause problems if it does. Therefore, checking with the local authorities is also an important step you shouldn’t avoid.

• Check if all the taxes are cleared

The last thing you want when buying land is a list of unpaid taxes. Always make sure that all the taxes are paid till the date you purchase it. This way you don’t have to bear the burden of taxes you never thought of paying.

Who are we?

Bodla Group is a known company in the real estate industry. We provide a wide range of services that cover almost all the aspects that you could need. Bodla Group takes great pride in the quality of services we provide. Our services include:

• Real estate construction
• Brokerage
• Engineering and contracting services
• Brick making
• A complete collection of building materials

We have successfully completed a diversified portfolio of projects. This speaks of our professionalism and our commitment to the real estate industry. Some of our distinguished projects include:

• DHA Villas, DHA Multan
• Askari Colony Phase 3, Dham
• Construction of roads at Askari Colony Phase 3, Dham
• Renovation of houses at Sehar Villas, Multan
• Renovation of houses at Shah Rukn-e-Alam, Multan
• Development of housing scheme at Gulshan-e-Sardar, Multan
• Bodla Homes, DHA sector 5, Multan

So, what are you waiting for? Book an appointment so we can start building your dream home today.