Land is a good investment, provided you buy the right plots. That is the view of Richard Tamerus, co-owner of the land real estate agent. "If you buy agricultural land that will continue to be used for that purpose in the future, you have to buy dozens of hectares to achieve a yield of 2 to 3 percent. That requires an investment of tons or even millions. That does not seem to me to be a suitable investment for a private individual. "
It is more interesting to buy agricultural land that has a good chance of being built on in the future. And that chance is reasonable: in the next ten years, 1 million houses must be built to meet demand, the CBS has calculated. Tamerus: "So buy land on the outskirts of growing municipalities."
Director-owner of and author of advises on investing in land . Agricultural land usually costs a few euros per square meter, building land often a few hundred euros. Building land is the most expensive in the Dubai. "But if you want a quick return, you shouldn't buy land. Because making money with land is a matter of being patient. In addition, you have notary and land registry costs and land is less liquid than shares. On the other hand, if you bought land a few decades ago in the vicinity of Schiphol, you are now laughing at all the other investors. ”
Van Wijk points to a number of pitfalls for investors who want to buy land. "There are many rogue parties that sell land. Read the fine print carefully when you work with a seller. It often happens that you have to sell the land back to the seller when you change the use of agricultural land. Such a clause is forbidden, but sharked sellers still manage to sell land on that condition. Upcoming off plan projects in dubai
Also take a good look at the location, Van Wijk advises. Is it realistic to think that construction will also take place there? And doesn't the seller ask too much? "Call in a nationally operating land broker who has an eye on opportunities. Also make sure that you are registered in the Kasaster as the owner of the plot and do not buy a piece of plantation in Asia, for example. Then you usually buy a piece of paper with great promises. ”
Risk spreading
As a private investor, how do you know which agricultural land has a chance to be built on and can therefore become lucrative? "As a land broker, we test the potential value of a plot through engineering firms and planners, so people who know a lot about spatial planning and have a lot of contact with municipalities."
In any case, according to both experts, what you shouldn't do is buy a random piece of land, even if you pay very little. Then chances are that you only lost money. "You can of course earn money with Christmas trees on a forest plot."
Another tip: spread the risk when you buy land, just like with shares. If you have a ton, buy three or four lots in different places. With one destination change to building land you have your investment back and you have a few lots left. But you never have a 100 percent guarantee that your investment will generate a profit.
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