Real Estate Question: What Are Disadvantages Of Purchasing A Land?

[Good-Guy]

When it comes to real estate business, there are many different kinds of properties you could purchase. You can purchase a flat, house, commercial places, shops, etc. However, one of the most interesting and the most widely purchased type of property is land. There are many people who purchase a land so that it could benefit them. How ever, I think that there are many disadvantages of purchasing a land, as there are pros and cons of every thing. I think one of the biggest challenge associated with purchasing a land is that it could be invaded by many land invasion groups. This is a common thing in my country.

The second biggest disadvantage is that you may find it harder to rent out a land. Many people believe that there is no point of renting a land because nowadays a land without a house is not something that is considered a place where people would live. many people such as farmers might rent a land for agricultural purpose, but this is something that usually happens in rural areas. Moreover, farmers might only rent a land if they consider that a particular is worth renting for cultivation purpose. So getting a tenant for a land might be another challenge. What are some other disadvantages of buying a land?

 

[Alexandoy]

As I had posted in a similar thread the invasion was experienced by my writer friend. Anyway, invaders are emboldened only when the occupant of the land does not hold a title. In the Philippines the land owner is protected by the title of the property that is registration with the Land Registration Authority. The invaders cannot argue because they are automatically considered illegal if they try to invade a titled land.

My issue with owning a land is the difficulty in selling. I had a 500-square meter land before which was intended to be our home in the near future. But due to lack of funds I decided to sell the land. It took me 2 years to find a good buyer. I couldn't just sell at a very low price because I could feel that the buyer was just taking advantage of my situation. He was dangling the cash on me. Fortunately I had the sense to think well so I refused the very low offer.

 

[Jasz]

There are many potential disadvantages of purchasing a land. Some of these include the following:
When you are purchasing a piece of land, you also have to consider the disadvantages. The main disadvantage is that you own a piece of land that's situated right next to a landfill. This can have negative implications for your property value.

Another disadvantage is that you have to go through the hassle of selling it. Selling a piece of land can be difficult if your property has no outstanding features or if it's in a bad location.

If you're purchasing land near a river, there is the risk that it might flood during heavy rains. And speaking of floods, another disadvantage is that you could lose all your belongings if your land gets flooded.

The seller may not be the true owner of the land. The seller may not reveal information about ownership that may affect your decision to purchase the land. He or she may not reveal any hidden defects in the land

The seller may also attempt to sell you an overpriced property by claiming it has better features than it actually does.. You should be very vigilant while trying to own a land.

 

[Sotherefore]

Generally I do not really sees a serious disadvantage of investing in real estate in any way , except maybe you are investing in a wrong location and you are also buying an illegal product because those are the only two risk factors associated with real estate investment, but a situation in which you have invest wisely in a good and highly populated environment , this Will result in selling and making profit from your investment which obviously is what every investors is interested of .

There are different ways people can invest in real estate and one of the ways is through buying of lands, for me I consider this as one of the most secured investment in the real estate market because when you are buying Lands , the lands will definitely increasing price and you can decide to sell it as long as you are satisfied with the profit, you can also decide to hold if you are not satisfied.

real estate investment is something an investor have to engage in proper research to understand the type of property he or she is buying because when you are buying the wrong property you might be at risk of losing your money that's all.

 

[Sotherefore]

Generally I do not really sees a serious disadvantage of investing in real estate in any way , except maybe you are investing in a wrong location and you are also buying an illegal product because those are the only two risk factors associated with real estate investment, but a situation in which you have invest wisely in a good and highly populated environment , this Will result in selling and making profit from your investment which obviously is what every investors is interested of .

There are different ways people can invest in real estate and one of the ways is through buying of lands, for me I consider this as one of the most secured investment in the real estate market because when you are buying Lands , the lands will definitely increasing price and you can decide to sell it as long as you are satisfied with the profit, you can also decide to hold if you are not satisfied.

real estate investment is something an investor have to engage in proper research to understand the type of property he or she is buying because when you are buying the wrong property you might be at risk of losing your money that's all.

 

[Deleted member 62875]

If I fully understand your question,what are the disadvantages of buying a land?
I will go straight by answering you.
The disadvantage of buying a land in an estate are :
you have very little say in how the estate is managed
1. other people feel they can make rules for how you live in your own house
2. you must call security to identify your visitors otherwise they will likely be turned back.
3. the security is not always guaranteed
4. you pay service charges for the rest of your life.
5. You can still have nosy neighbours in your estate
6. One fool with over-bloated ego can hold your water supply, electricity or service to ransom if you decide to do somethings you want in your house outside the estate policy. They can be pretty rigid in their rules.

 

[Kingsley]

There is hardly anything in this world that has an advantage that does not have a disadvantage, we all just try to find a balance to it. I see some people going round and saying all they care about is making profits, this is absolutely not correct as it appears that in a business the account that shows the financial strength of a business is called the profit and loss account. There is a reason why the account is called profit and loss account. In life it is either one is making a profit or a loss. So we should not just focus on the advantages as there are also disadvantage to a particular thing. Owning a landed property some feel is a major asset this is true theoretically, but practically one who purchases a land and fails to utilize it productively for a reasonable venture will not benefit anything from that land other than incure more expenses in the course of maintaining the land in terms of clearing the bushes on it. And if one secures such a landed property in a very unsafe territory I doubt if that land can amount to anything reasonable as the land will not bring about any profitable venture.

 

[Ithedicious]

I can't see any serious disadvantage of purchasing a land because Lands as I understand is also a profitable Investment in the real estate industry and so many investors do choose to invest in Land .

The only thing is that when investing in land, you need to take all the precautions to make sure that you are investing in a legitimate land project because there are so many of them in the real estate market that are not trusted and you can get into trouble by investing in such .

Or another possible disadvantage of investing in land is that the government might likely takes over the place if nothing was built in such a location if needs be.

Normally the government of every country is the real owners of lands as we understand.

All these are minor disadvantage that could be overcome through proper research and planning , apart from this I don't really see any serious disadvantage there.

Personally if I have opportunity to invest in the real estate , I will definitely invest my money in Lands and housing because I consider those to be among the most profitable.

Some people can also make mistake by investing in a location that won't even make their assets to be valuable

 

[Mika]

I do not see any disadvantage in purchasing land. In fact, I believe it is better to invest in land compared to a house. YOu can invest a comparatively low amount, yet receive more profits. For example, if a piece of land cost x, you might have to pay 2x to buy a house. However, if you are selling back the house 5 years later you might hot get a better price for your house because with each passing year the price of your house depreciates because the house will continue to age. You might get just 10-20 percent profits by selling your house, however, you might get 3X or even 5 for your land 5 years later because the price of land never goes down. The only disadvantage, if it can be called disadvantage that I see is you can start collecting rental income or save money in rents when you invest in house, whereas you might not directly make n income from your lnded property. However, this does not mean you cannot rent out your land. You can still rent out your land for a warehouse etc. and collect rental income. If have a piece of land you can take a loan to construct your own home.

 

[Shigobad2020]

Land is one of the gift of nature which normally appreviates with times depending on the environ ment , if the environment is a developed area , you can sell immediately and make your money but of the environment which the land is being secured is a developing area , they you can just wait for some times till the land appreciates and then sells it off at a good amount of money .

So , there are many disadvantages of buying a land , one of them is renting a land from the landlord to build your company, the landlord might keep increasing the rents because he or she knows that you can't remove your business and the building on the land because it will be to your own disadvantages, so thats why you need to buy land and not rent ,
secondly buying a land you realised is owned by the government which might be taken away anytime . And finally buying fake land in whcih the owner will sell a piece of land to many people .