adminland purchased to finally turn the dream into a reality.
One must experience this exciting exercise at least once in a lifetime. However, the main motive may be building the property for the specific use by one and their immediate family.
It is imperative that one takes a businesslike approach to the initiative. As with all things in life, there is uncertainty that hinges on the future.
One must be able to recoup all expenses spent on building and make a profit on the effort expended, given circumstances that will influence a possible sale in the future.
This is where the right selection of the location of the dream property becomes critical.
All property is investment, the buyer of the stand must ask of themselves the same questions a seasoned investor will ask.
What value or return will I recoup on this piece of land? How long will this take and at approximately what rate of return?
What is the best property I can build to get the maximum return? After posing these question to the estate agent one is more equipped to make a better decision whether to pursue the investigation or not.
If the stand or plot is located in a built up development or existing neighbourhood, it is wise to investigate first the kind of houses in such an area.
You will need to establish, for instance, whether the houses are triple, double or single storey.
The average bedroom numbers and house sizes in relation to land area. Determine the average value of the properties in the area.
Such a determination will give one an indication of what type of property one should build to get the best return.
If, however, the development or land area is new or was previously undeveloped you need to ask the developer about the plans they have available for the development.
What are the average sizes for the stands? What plans are in place for the type of properties individuals are to build?
What extras are the developer offering that can increase the value of location? It is still important to have a quick assessment of the surrounding areas of the development, their average stand sizes, property types and values.
One can use this to gauge the approximate value of the properties that will emerge from the development.
If the developer has not put any rules on what type of properties should be built in the area, then the buyer of the vacant stand must be vigilant in investigating the best property to build.
The stand itself should cost between 25 and 30 percent of the total bill of constructing the house.
So if one has only paid US$3 000 on a vacant stand, being the fair value of the property it does not make sense to put up a structure for US$60 000.
There is a tendency among new property owners to over invest in a property that is located in the wrong area.
Such an investment though at first may seem extravagant or like the realisation of a dream, when it comes to selling and recouping the money spent on investment one will be very disappointed.
Buyers normally will opt for a property in bad condition in a better neighbourhood than an extravagant home in the wrong area.
Therefore, it is misguided to attempt to save money when buying the stand or plot, in the hope of utilising more when building.
The size of the stand matters much in proportion to the property to be built on it.
This is where the adage of “mansion on a postage stamp” will apply. An evaluation of the type of stand must be taken before deciding what type of property is to be built on the stand.
Here the general characteristics of the land should be assessed, whether it is rocky or plain, green or dry, treed or arid, wide or narrow. It is always best to build or design the house around the stand as compared to fitting the predetermined on the stand itself.
Here one can ascertain whether there is a street or road. Whether the property should face toward or away from the road.
Where the driveway should be located and if there is enough room for cars and delivery trucks to turn around.
Where the most pleasing views are? Which side the sun rises and sets? Which views one would like to see from the living areas, the kitchen and the bedrooms?
Where windows and doors will be placed? A location based plan and eventual building always guarantees a unique and profitable property assuming quality of work is assured.
Vengai Madzima is a property investment consultant and analyst with Wisdom Properties Real estate. He can be contacted on 0772 468 093 email: [email protected]
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