Do you want to invest in land? There are many factors you need to keep an eye on. In this article we will discuss the most important aspects of investing in land.
The Netherlands is one of the most densely populated countries in the world. Due to this the land is very scarce. There is a lot being done in The Netherlands to protect the nature and therefor there is even less land available for economic purposes. Add this to the healthy economy in The Netherlands and you have a remarkable market for land. A good example is how this practice has doubled in value in the past 10 years. On top of that the population in The Netherlands is still growing so the shortage of houses is only growing. This means the local governments must look outside the city rings for expanding.
Big difference between agricultural land and building land
Buy low and sell high. For those who seek to buy Agricultural land, relatively pay a healthy and lower price then “ready for building” land. The biggest difference in land prices are seen in high populated cities in The Netherlands. Building land can almost be 70 times as expensive as Agricultural land
Constantly changing market
The unwritten rule in the land market is that municipality was entirely responsible for the destination plan of the housing market. Due to the staggering housing market the price of land is also rapidly increasing. This change is what makes this market so interesting.
Landowners are smarter
We see that landowners use their land more wisely. Consider, for example, the demand for secondary conditions that are favorable to the landowner. For example, shares in the new construction projects. Landowners are also increasingly aware that land be a speculative product. This entails private and institutional investor. By selling land as an investment, agricultural land holders can further benefit from land.
Housing market and Land
We already said that the housing market has an impact on land prices. To abide by the constantly increasing housing market, new houses will have to be build. This will happen on mostly agricultural land. Agricultural landowners are becoming more aware to this issue and are selling their lands to investors to increase their profit and reduce risk.
On what locations do you buy land
The investment climate of land has changed considerably in recent years. More and more investors have entered the land market. Moreover, house prices have also been rising for years. All this has profound effects on the land price and market. However, the question remains: where should I buy land? We see the biggest increases in value in the major cities, and specifically where new residential areas are to be built. After all, the demand for housing is the highest in the cities and logically the most must be built there. The municipality has so-called destination procedures where they look at the best locations for new home locations. Municipalities often determine the long-term outlines on which new construction projects are based. An investor is smart to look at this. Finding exact locations is often difficult because expensive land prices make the weather less attractive for a municipality. At the same time, investors want to buy cheap land.
How do you buy land?
You can buy land through a notary. For this you need to do proper research into the location (s) and zoning plans from the municipality. You will also have to negotiate a price with the owner. For this you can hire a broker again. Another option that produces much less stress is Milanium
Check out these articles
The municipality of Amsterdam needs to greatly accelerate the new construction of homes. Due to the scarcity that is now arising, prices of homes in the capital are rising undesirably high. A wide range of parties reports this to Het Financieele Dagblad. From builders, brokers, developers and investors to corporations. The municipality responds that they are doing what they can, referring to the plans to realize 50,000 new homes in the next 10 years.