There is more to land than meets the eye. Economically speaking, the land is not just ‘the ground.’ It includes everything that you can use for economic gain that you do not create.
Resources, by nature then, are limited so that when you control a particular piece of land, you have an excellent advantage in business, for example. There is also a limit based on different factors to the kind of development you can make on a piece of land.
For example, in Baguio, land for sale could be ideal for use in Agriculture. Different factors like the soil type and the weather of the area that the property is located contribute to making the piece of land ideal for agricultural activities like farming.
As it is, there are various kinds of land available in the market, which include:
Residential land
Residential land is for building private housing. The size of the property will dictate the sort of home that will be made, but they all fall under multi-family or single-family units. A person who is interested in buying land so that they can build their own house can go for this option as well.
One who is approaching the matter as an investor can build condominiums or apartments. When looking to buy residential land, be sure to look at the zoning laws in the place that you are considering.
Every location will have different guidelines so consulting can save you buying land that you cannot use for what you had in mind in the first place. Further restrictions may limit the size and the structure you put up. In other cases, guidelines speak to the closeness of buildings to each other and to the implements and facilities you have.
Commercial land
Here, the land is intended to be used for business. Business uses could cover anything from office buildings and shopping centers to malls and parking lots. One can use commercial land to establish a business compound that they use for their business activities.
Alternatively, they can divide the area into different sections and then sublease them to tenants. For commercial land, the return on investments is often immediate more so if you lease the property. Municipalities, infrastructure providers and utilities will treat commercial land differently.
For example, while residential land might appreciate at any rate per year, commercial land will fluctuate in value wildly based on where it is located and what businesses are nearby. Note that zoning variances may change the design of a property if special circumstances arise. In such cases, redesigning will prove necessary.
Industrial land
Any person who participates in producing and manufacturing goods can use this land. Often, this land will be significant. The expectation here is that one will need plenty of space to accommodate their production lines and the equipment and machinery that they will need.
Land can be deceptively complicated. On the surface, it looks like you can see a plot, produce the money and it is yours, but many potential problems are lurking under the surface. What you value should add up significantly to the list of things you will investigate as you do due diligence.
