Anton Senderov Compares Investing in Built Homes vs Vacant Land
You want to invest in real estate but you are faced with a dilemma. Should you invest in an already-built home or should you go for a vacant piece of land? Each investment has its pros and cons, and you will have to compare them well before you make the final decision. According to Anton Senderov, “You can’t just pass the verdict that a vacant piece of land is better, which is what most people do. They both have their ups and downs, and you must look at your requirements to figure out which one is best for you.”
Let’s take a look at how both these options fair against each other.
The Future Developments
It’s usually a vacant piece of land that makes you think about future developments. When you buy a house or building that has already been built, you have to assume that the area has reached its peak of development. However, you have to know that all the assumptions of the future developments are just assumptions. There is nothing to assume when you buy a built property. However, you also cannot ignore the fact that the future value of a built house cannot rise as much as the price of a vacant piece of land.
If your analysis is correct about the future developments, you could get 200% the returns on your investment in a vacant piece of land. In fact, if you purchased the property at early stages, you could get even more than that. “At the end of the day, it’s all about comparing risk to certainty. With a built property, you get a smaller return but it is almost certain. With a vacant piece of land, you could get a huge return, but only if you are prepared to take a huge risk too,” elaborates Anton Senderov.
The Property of Your Choice
One of the things that people really love about vacant pieces of land is that they can build a property of their choice. Yes, that’s definitely a great pro of investing in parcels and vacant lands, but it usually suits those who want to build the property for their own use. Will the potential buyers find your property to be as attractive, appealing, and valuable as you do? Another important thing to consider is the surroundings. The price of your property, no matter how beautifully you build it, will still depend on its surroundings and neighborhood.
In other words, you can build the property of your choice but you can’t price it the way you want. Its price will still have to be according to the market. On the other hand, buying a built property means that you can find a property that looks exactly like you want it. Rather than spending months to build the property, you could get it within a few days by paying for it.
The Instant Available Cash
Another thing you can compare between two types of properties is the cash that is available to you. When it comes to buying a house that’s already built and complete, selling it back on the market is much easier. You won’t have to wait for buyers for many months before you can get rid of the property. However, if you have a piece of land in a society that is still in its infancy, it will be hard for you to sell it to others. That’s because people don’t want to take risks and when you sell them a property like this, they suspect you and think that there must be something wrong with the project that has forced you to sell yours so fast.
You have to know that each type of investment is great when you make it work. You can’t say one is better than the other by listening to others or based on assumptions. You just have to know how each investment vehicle works to give you the best returns.