Want to Try Land Investment? Check Out This Article First!
Land investment is one type of investment that you can undertake. Especially if you belong to the middle class. If you are interested in this type of investment, don't miss this article.
This article contains several pieces of information that can help you invest in land. From tips to the requirements for land that can be invested in. All that information can be found below!
Tips for Investing in Land
For something to be done successfully, one must follow several tips. This also applies to land investment. In this subsection, we have some tips that can be followed to ensure your success in land investment. So, what are those tips?
Choose a Strategic Location
The location of the land is very important in land investment. The more strategic the location of a piece of land, the greater the profit that can be obtained. Regardless of whether the land will be sold or used as a shop.
Compare Land Prices
Before deciding which land to buy, compare land prices from various places. You can ask a real estate agent for help with this tip. Alternatively, you can also do it yourself by visiting several pieces of land that seem promising.
Try to Get the Best Price
This tip is still related to the previous one. To implement this tip, you can compare the land price with the Land Object Selling Value (NJOP). If the land price is below the NJOP, then that price is the best price.
Check the Land Use Status of the Land You Want to Buy
Every piece of land has its own use status. Whether it is designated for residential or non-residential purposes. Knowing such status is very important. The more you know about its use status, the better you will understand what you should do with the land you buy. Whether it will be used as a residential house or just as a shop.
Learn About the Potential Increase in Land Prices
In addition to getting the best land price, you should also study the potential increase in land prices. If the potential for price increase is good and continues to rise, that land is very suitable for investment. Ideally, the potential increase in land prices ranges from 5 to 20 percent per year.
Immediately Arrange the Legality of the Land and Don't Forget to Secure It
If you have found suitable land, buy it immediately and arrange its legality. This is done so that the land you are targeting is not taken by others.
The legality that needs to be arranged is the Certificate of Ownership Rights (SHM). After arranging this legality, you are advised to secure the land you bought. One way to secure the land is by fencing it off.
By securing the land you have purchased, you are indirectly protecting it from encroachment by others.
Benefits of Land Investment
There are several benefits you can gain from investing in land. Some of these benefits are:
The Investment Value of the Land Can Continue to Rise
The first benefit is what makes people want to invest in land. Land itself has an investment value that can continue to rise. Especially if the land is located in a strategic area. If you manage to acquire land in a strategic location, you can achieve a potential increase in investment value of up to 200 percent.
Minimal Competition
If you do not like competition, land investment is the right choice. This type of investment has relatively little competition. This allows you to invest in this field without fear of being outcompeted by others.
Can Be Used for Various Types of Businesses
In addition to being sold directly, the land you invest in can also be used for various types of businesses. From shops, boarding houses, to parking lots. Such advantages cannot be obtained from other types of investments.
The Risk of Loss is Very Low
In addition to minimal competition, land investment also has a very low risk of loss. This is because land is not easily affected by inflation like stocks and cannot be stolen like gold. This advantage will be even easier to obtain if you maintain the legality or SHM of your land.
Does Not Require High Maintenance Costs
Unlike house or property investments, land investment does not require high maintenance costs. Especially if the land being invested in is still vacant.
Even if maintenance costs are needed, they only cover grass cutting, hiring a guard, and buying a fence.
Increasing Demand for Land
As time goes on, the demand for land is increasing. This is due to the many people who want to have a house or simply own land for investment. With this high demand, you can sell your land to those in need. You can sell it per plot or as a whole.
Requirements for Land Suitable for Investment
Not all land can be used as an investment tool. There are several requirements that must be met if a piece of land is to be used for investment. These requirements are:
Strategic Location
The first requirement is that the location must be strategic. With a strategic location, a piece of land can be easily accessed. Especially for those who want to use the land as an investment tool.
A strategically located piece of land can also increase its investment value. Not only that, but such land is also easier to build on, whether for houses, shops, or parking lots.
Complete Legal Status
In addition to a strategic location, having complete legal status is another requirement. Ensure that the legality of a piece of land is very complete, making it suitable for investment.
The legal documents that a piece of land must have are the Right to Cultivate (HGU) and the Right to Build (HGB). You can check the completeness of these legal documents yourself or ask for help from a notary service.
If the legality is complete, you can arrange for the Certificate of Ownership Rights (SHM) for that land. By arranging the SHM, you have indirectly changed the status of the land from public land to your own. The SHM will also make it easier for you when you want to sell the land later.
Has Price Increase Prospects
The last requirement that a piece of land must have is the prospect of price increase. Ideally, the prospect of price increase for the land should occur at least once a year.
Ideally, a piece of land suitable for investment has a prospect of around 5 to 20 percent. However, this prospect can increase if the land is close to strategic places, such as malls, train stations, or apartments.
To find out the prospects for price increases of a piece of land, you can ask several parties. The city planning department is one of them.
That is a series of information about land investment. From tips to the requirements for land suitable for investment. So, are you interested in investing in land after reading this article?
Author: Anggie Warsito
