Differences Between an Investment Lot and a Residential Lot

You have reached at decks brisbane a point in your life where every decision counts: your effort is finally paying off and you are considering taking the next step. How to ensure a heritage that you can inherit from your family? It’s time to invest.

An excellent option to obtain economic support and generate long-term returns is the purchase of lots and land that will give you a heritage that you can even inherit from your children. But remember: spending is not the same as investing. Before making a decision, let us tell you that there are two types of land you can acquire:

  • Residential lots
  • Lots of investment

Do you know how these two types of properties differ? Here we explain it to you:

Residential Lot
Residential Lot

1. Construction and Structure

The residential lots are urbanized land, designed to be inhabited immediately or next at decks brisbane. They usually have an adequate space to build a house for you, without worrying about urbanization. These lots are perfect if you want to build to live in the short term. The investment lots are land without any type of construction, urbanization or services. Basically, it is the virgin land that patiently waits for an investor who recognizes its value and buys it since with the passage of time it will bring great returns. This is the perfect option if what you really want is to invest.

2. Value of the Property

The price of both properties also varies considerably:

A residential lot has a very high acquisition cost because when you buy it you will be paying for the infrastructure, time and profit of the construction company.

Instead, you can buy a larger investment lot at a very affordable price, ensuring that the land will increase in value and multiply your investment over time.

3. Maintenance Expenses

If you decide to buy a residential lot you must take into account that the water, electricity or property services will be higher.

It also considers that many residential lots are in developments that request a maintenance fee, which makes the land even more expensive.

An investment field is much easier to maintain since it requires little time and money for your care. You will practically forget to pay for services (the property payment, for example, is estimated at $ 15- $ 20 pesos). This means Greater performance without the need to manage it.

4. Investment and Returns

Investment Lot
Investment Lot

Houses or residential lots

By having a much higher initial outlay, the obtained surplus value is not compared with the yields that an investment lot can generate.

A lot of investment

In this case, is a much cheaper property you do not need to have great economic liquidity, just visit here for more JDLConstruction. If you know how to wait for the right moment to come, your investment will give you high returns, far surpassing the surplus value of a house built in a residential lot.

5. Return Investment Time

Due to its high acquisition cost, recovering the investment when purchasing a residential lot will not be a quick process. Many times, when wanting to sell the lot you will have as competition a developer with better sales conditions than you.

With an investment lot, you can buy land at an excellent price, in a good location and practically stay there, to “mature” until the time comes when you can sell it with much more performance.

As you can see, the differences are many, but it can be summarized as a simple decision: spend to live, or buy to invest.It is always worth doing an adequate planning and approaching a consultant who can help you decipher which is the best option for you, your future and that of your family.

6. Reduce Movement and Containment of Lands

Buying sloping land is always cheaper than buying flat land; this is because sloping ground must be leveled to build the house. The question is, does the cost of paving the house compensate for the reduced cost of buying from a sloping land? Generally yes, in the sense that the movement and containment of land are not usually as expensive as the increase in the value of flat land, according to our experience. However, this has nuances.

If we buy a sloping terrain we cannot pretend to turn it into a plan based on retaining walls. We must adapt to the slope and either build our house on different levels or build a smaller house on one level.

In any case, we must always keep in mind that to get home there will be stairs either because we access from a higher or lower level. In any case, adapting the construction to the slope allows us to optimize the use of the land and reduce the movement and containment of lands, with the consequent reduction of construction costs.

Working with the dimensions of the land will be essential when building on the sloping ground. With this, we will also achieve an incentive relationship with the land and surely more access to the outside. Even so, we can always place spaces for occasional use such as warehouses or garages where ventilation or natural light is not essential. Another solution is to illuminate these areas through patios that reach the lowest level.

Finally, in relation to the movement of earth on sloping ground, it is necessary to take into account that the machinery for the works is paid according to the hours that are necessary. For this reason, the fewer days we need, the more we can save. It is not convenient for that, to think only about saving. It is preferable to take into account the conditions of the house and the needs of each one. You have to think that a home is for life and to value each decision in a balance prioritizing each investment.