Investing means taking a risk. Sensible investment means the risks are spread. And land turns out to be an inflation-proof investment. It does not require maintenance and you do not need to take out insurance against fire or theft. What are other reasons for investing in land and how does it work in practice?
Why would you invest in land?
So, investing in land is a good way of spreading risk, because land is inflation-proof. But what about the expected return on investment?
The total yield is influenced by several factors. For example, land is often leased by the owner, which generates an annual return on investment. In addition, the price of (agricultural/) building land has increased over the past 20 years. And as soon as the destination of land changes from agricultural land to building land, the landowner achieves the highest return on sales. Of course, not every agricultural area is used for housing. That’s why it’s a good idea to get informed before you make a purchase. But how does the purchase of land work exactly?
How does it work?
Investing in land takes place in a few steps.
The first step actually consists of the consideration described above. As an investor, ask yourself whether the purchase of land fits into your investment portfolio. The return might be somewhat lower than shares, but there are also lower risks. And therefore, a good chance of a higher return on investment exists. That profit arises as soon as the land is needed for housing.
The next step is to examine and select the correct lot.
Investing in land can be for the long term. This is the case where agricultural land in the zoning plan remains marked as agricultural land. The Spatial Planning Act stipulates that a zoning plan must be redefined every 10 years. After that period, there is a chance that the destination of the lot will change.
But investing can also be for the short term. This can be done by selecting a lot where the adjustment of the zoning plan is already scheduled. There may also exist concrete plans for housing. Milanium offers lots that are conveniently located for housing, with prospects for both the long and short term.
The purchase and settlement of land
After you have chosen one or more lots, Milanium will accompany you with the purchase. We will draw up a draft agreement. And then the notary prepares the deed of sale. Because land purchases are recorded in a notarial deed. After signing the deed of sale, the notary will ensure that the plot is registered in the register. The purchase requires expert knowledge. That is why the consultants of Milanium work together with an expert notary office, which specialises in the transfer of land plots. After purchasing the plot, this investment actually does not require attention anymore. Time can do its job. It is neither necessary to regularly follow the news to keep up with the relevant developments. The Milanium advisers keep you well informed. Became curious? We would like to invite you to an exploratory meeting.
