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Purchasing land is mostly regarded as a long-term investment. Because it usually takes time for the property and the area of the property to develop and become profitable. That’s why many people start investing in land early compared to others. It is a good approach since that way you get more time to weigh out the pros and cons. Also, as purchasing land requires a large sum of money, it is essential you know what you are getting into. Therefore, before you start investing, there are some factors you should consider when purchasing land and for making a better decision. Let’s go through some of the land buying factors.

Location of the Property

Location is the most important among all the land buying factors
Location is the most important among all the land buying factors

Regardless of the property type, location is always the most important factor to consider before purchasing the estate. That’s because location is an umbrella term and there are several land buying factors automatically come with it. For instance, if you emphasize finding the right location, you would be looking into the area’s accessibility, roads, transportation facilities, and future development potential. Not only that, based on location, you can also understand the quality of the land. Moreover, location also plays a vital role as soil strength can be inconsistent, even if it is under the same land development project. Hence, you need to be very precise about choosing the right location and most importantly the right plot before purchasing it.


For more financial tips to invest in land, you should contact professionals
For more financial tips to invest in land, you should contact professionals

Irrespective of the investment objective of purchasing a land, you should always consider your profitability. Because land is an asset that never depreciates and you would want to make the most out of it. Unless you purchase land in urban areas, you cannot guarantee that you will be making a profit within a specific period of time. But how can you understand if your desired property will be profitable or not? Try to understand the demand for such land in your location. You can also understand it by looking into the urbanization rate of nearby locations. Apart from that, you can also make the investment profitable by injecting funds. For example, developing the land with soil filling or constructing a building can increase the value of the property within a short period of time. But you need to make sure you have the scope for carrying out such developments.

Area Permissions

Neighbors and local registry offices are also a good source to collect land buying tips
Neighbors and local registry offices are also a good source to collect land buying tips

Be sure to look into the area’s permissions before purchasing a plot. Because the government has several regulations on the usage of land and they have segmented areas accordingly. These restrictions are not limited to only the type of the property (e.g. residential, commercial) but also the height of the building and other facilities. For example, in particular areas, you cannot construct a skyscraper because it might complicate flight maneuvers. Similarly, in some locations, you might not get permission to construct buildings because of soil type and strength. Furthermore, getting utility connections also depends on these policies and so you should thoroughly check your authorizations.

Financing and Expenses

Be prepared for additional cost when you consider land for investment
Be prepared for an additional cost when you consider land for investment

Another important consideration before investing in land is ensuring the source of finance. Because unlike apartments in urban areas, getting a loan for purchasing land can be difficult because land itself cannot generate monthly cash flows. Therefore, even if you pledge the property as collateral, lenders may classify your request as an unsecured loan and charge higher interest rates. On the other hand, purchasing land will automatically incur costs in terms of taxes, maintenance and utility bills (if any). Hence, before purchasing a property, you should ensure financial stability to tackle such costs.

Environmental Risks

Natural calamities also fall under land buying factors too
Natural calamities also fall under land buying factors too

Purchasing a land, you should take into account the environmental risks in a particular area. For our country, the most common environmental risk is flooding. In hilly areas, you should also look into the landslide risks of your property. Not only is it a direct threat to your property, it is also an indication of the strength of the soil. If your property is in a flood zone, chances are it has high moisture levels and so the soil might not be suitable for construction. But there are several measures to tackle such problems by adopting different foundation methods which can become quite costly. Therefore, you should assess the land for construction and take this matter under consideration.

Legal Background

A solid legal background is always good for investment
A solid legal background is always good for investment

Lastly, it is highly recommended that you check the necessary legal documents before purchasing land. Because if you are to make a solid investment, any minor legal issue can turn out to be a huge problem, costing you a huge and unnecessary expense. Legal disputes are always a burden and it is best to avoid them at any cost. Checking the legal documents, you should get an idea of whether the property is suitable for your investment or not. For that, you need to contact the concerned land and registry offices in that particular area. Additionally, talking to neighbors is a good source to know more about your seller and the legal history of the property as well.

Kindly let us know if you have any thoughts on land buying factors in the comments section below. We are also open to any property related queries, feel free to ask!


  1. M.S.Munir

    I need help to build a Duplex in my 9.75 decimal plot of land in Myn Sadar. The land is covered by a boundary wall, has water source and electricity connection with a approach road.

  2. Hello!
    I understand you’re looking for a contractor to begin building on the plot. Though we actually offer real estate services that covers acquisition of property, feel free to contact our hotline and ask for an expert that may be able to guide or advice you on the matter. Also, if you’re more comfortable with Facebook, knock us on our page. Good luck!
    Hotline: +8802 9890044

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