The world in which we live nowadays can be referred to as the concrete world, as we are surrounded all around by large multi-story buildings that touch the sky, commercial buildings, residential buildings, and whatnot. We, in fact, see architectures, which amaze our eyes.
We, humans, have this tendency of making a profit out of everything we see or everything we have; but in a world full of competition, some of us get in the dilemma that what we should opt to construct on our land; which would give the beneficial outcome (profit) in the long run. Hence, here we are going to discuss a few of the facts that would help in getting the most profit out of our land.
Before that, we should know what exactly is land use? Land use had been in practice for more than 10,000 years ago. Generally, it is referred to as the management and alteration of the natural states of land (forest, wilderness, etc.) into settlements or built environments.
Now, coming back to the point; these are the few facts that we should keep in mind to make the most beneficial outcome from the land:
Before investing your money on any land, you need to consider its economic aspects:
We are supposed to study everything about the property (land) before buying it. First, we should learn about the location and should consider its surroundings. We have to imagine in our mind that whether, the land is improved, that is, if the land is already developed we can construct anything soon without having to wait.
On the other hand, if there is scope of the improvement of the land in coming years, we should definitely invest on that very land as we can get some reasonable deal (less money for the land as compared to already developed area) but the only drawback of these land is that you have to wait for some time.
Now, it is up to you on what kind of land you are supposed to invest your money. If one is in a hurry of constructing something to get profit, then one should definitely invest one’s money on the land that is situated in the already developed location. Also, you can get the help of the best construction company in the city such as Cintech Construction. They will guide you to the best location.
Overall, you are supposed to keep this ‘four test’ rule in the mind, before buying any land. These tests are Physical Possibility test, Financially Practicable test, Legally Permissible test, and scope for maximum productivity.
1. Physical Possibility
We should always consider the physical possibility of the land. The physical possibility test generally referred to the physical characteristics related to the site that might influence the beneficial outcome of the site. The terrain, shape, size, approachability of the land the probability of natural disasters, such as earthquakes and floods, influence the use of the land. Easy accessibility to the land increases the utility of the land, as for particular property type, visibility is a significant factor.
2. Financially Practicable
Financially practicable referred to making money out of the land. For instance, if we construct a house may not produce income in the sense of commercial site, and economic practice is contemplated by considering the price trends. Timing also plays an important role in financial feasibility .timing refers to as when what should make on the site and considering the future expectations of the rents levels and occupancy.
3. Legally Permissible
By the term legally permissible, we mean that what uses are permitted on the site. We should learn about legal restrictions, zoning, historic district control, building codes, and environmental regulations. For example, if you buy land in the residential colony, then you cannot construct an industry or factory. So, it is advisable to learn about the legally permissible.
4. Scope for Maximum Productivity
To test the maximum productivity, the investor should focus on market demand. An investor should focus on what they must construct on the proposed land considering the demand of the market. For example, if we construct a house on the land, there will be negligible income. On the other hand, if we build an apartment on the same land; then there would be more income as compared to the earlier.
Best use of Improved Property
With the improved property, there are three possibilities that should be considered:
1. Dismantle the already existing developments and reconstruct the site as of today’s market demand.
2. Continue the existing use of the improved land, if it is still in the trend.
3. Amend the existing use of the improved property.
The best and the highest use of a property as improved may be a prolongation of the existing use, modernization, expansion, transformation to another use, total or partial dismantle or some combination of these possibilities. When you are working with the best construction company such as Cintech Construction then there is the highest possibility that you will get the highest use of the improved property.