Investing in Land
Continued
Some of the richest people in Latvia made their money from land. There are cases of individuals paying the equivalent of pence per square metre and selling for ten, twenty Euros and more per metre.
Land prices were rising steadily in Latvia until the current economic crisis took hold. Even so prices haven't fallen by the same degree as property prices. In some areas prices have not fallen at all and land has remained a very good investment.
More property can be built and if too much becomes available too quickly, this can have a negative impact on the market as we have seen in Riga. But land is different, as Mark Twain said 'they 'aint making any more of it'! It can't be produced or increased (except perhaps in Dubai at horrendous cost!).
All land will increase in value given time. But not all land will increase at the same rate. Obviously (raw) land within the Riga City boundary will increase ten fold when it is earmarked for development, but this land is not that cheap to buy and development may be many years off.
There is land currently for sale in Latvia that will increase in value at a faster rate than other land. Obvously if you can buy in an area where future development takes place, you can make some serious money.
We have been looking at land for 18 months, checking, comparing, analysing and have seen some wonderful pieces for sale, some in or near villages and towns, some remote with lots of wildlife, deer, wild pigs and beaver etc. We have bought some too and seen prices in some areas rise faster than in others.
I read that Bob Hope made millions of dollars from his land investments. His trick was to buy up desert land a few miles outside of Las Vegas and wait for the city to expand towards it, then he would sell for a substantial profit.
How You can Profit from land investment
You can buy land and wait for it it to appreciate and then sell. Very simple and you might make a fortune if you're lucky. But there are better ways than trusting to luck.
With any land investment as with any property investment, the profit is made when buying and locked in until selling. The longer the period between buying and selling the higher the profit. We believe any investment in land should be for a minimum three to five years.
In this period the price increase is not linear. After two years the value may have increased by 25%, after three years by 50% and after five years 150% or more. Don't forget this is raw land with nothing added except time.
It is always possible to add value to your investment. This can be done by adding or introducing assets, such as power, water, recreational facilities, a house or log cabin etc, etc. Sometimes this can be done at minimal cost increasing the overall value dramatically. Sometimes it may be possible to generate a rental income from the land.
Now (Feb 2009) is an excellent time to buy. Those currently selling land are usually doing so to ease their cash flow and survive the economic down turn and are more than willing to negotiate on price.
Of course it is important to buy the right piece of land in the right location to maximise the potential profit and it is essential to understand the way land is bought and sold in Latvia and the ways a foreign buyer can be taken advantage of.
Do you want to know more about how you can invest from as little as 3,000 Euros in land that will generate a projected 75% on your investment over five years?
Please note that the information on this website is not regulated financial advice, which recommends any specific course of action.
Property values can of course decrease as well as increase. No express or implied income claims are made on this website. Riga Property Services HVS take all reasonable efforts to ensure the information published on this website and communicated elsewhere, written or verbal is accurate, current and complete in every respect at the date of publication or communication. However no warranties, guarantees or representations are made or implied as to it’s accuracy.
