Here’s why Buying a Plot is better than a House Unit

Here’s why Buying a Plot is better than a House Unit

INVESTING IN REAL ESTATE

A vacant plot or a House Unit?

Investing in land is a fairly simple and transparent process. Land is a tangible asset unlike stocks or shares. The limited supply and the constant increase in demand guarantees a plot owner some boosted profits as land appreciates with time.

When looking to own a home, it is advisable to go for the vacant piece of land. Vacant land is ideal for a seasoned investor, the one who wants to purchase and construct more residential or commercial units thus diversifying his property portfolio.

When purchasing a piece of land to construct your dream home on, it is important to consider some factors such as availability of proper infrastructure as it would be better if the plot is connected to a nearby road and can easily be connected to public utilities such as water and electricity.

Majority of ready-made houses are often expensive. It is very fulfilling for one to buy vacant land, customize the structure he/she wants built on the land and make their preferred architectural designs based on building code of the area as well as zoning. Buying a piece of land, especially in the outskirts of Nairobi is very cost effective and gives one the time to get ready in terms of finances.

When you compare the maintenance cost of a piece of land and that of a house, the cost associated to the land is cheaper. Payment of relevant property taxes is much lower on vacant land as compared to when buying a house. This is because you will not be bothered by costs for renovations or pay service charges before constructing or charges on services such as mowing the lawns.

The value of vacant land increases with time, as we normally put it, it appreciates in value. When the area is stocked with amenities, a good example being the presence of good infrastructural developments, there tends to be an increase in the demand for property from that area. The value of land can increase drastically if there was land primarily bought in the outskirts or in an undesirable area which regenerated to a prime and desirable area following constructions and developments.

Some people buy plots in the outskirts of major cities with the belief that there is little to no competition thus making it a breeding ground for matters negotiation and enables the buyer to get a good deal.

When purchasing land, we must physically visit the site. Some people prefer having certified surveyors in tow to ensure that the property exists and meets the standards that they want. In some developed countries this is not the case as they can purchase land in the comfort of their homes following some advanced technologies.

Buying a piece of land is not always a walk in the park, most especially when land is purchased in the wilderness or in an isolated area which may not appreciate with time.

Although vacant plots do not generate income immediately, one can find a profit making idea which may bring income as he/she awaits to construct on it. Some of the activities one can consider is renting the property out to be used as parking or one may even prefer leasing. This is all with light to the fact that more income will be generated once you sell the plot when there is demand.

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