Sunday, May 20, 2007

Purchasing Raw Land is a Lucrative Investment

By: David Lovendahl

With the rise in real estate prices, and the increase in the World’s populations, the demand for available land to build on has also dramatically increased. As a result of this, the real estate industry has seen a dramatic rise in the amount of people looking abroad to buy raw or undeveloped land.

The new hot spot for recent land acquisition and development has been within the country of Costa Rica. The benefits of turning raw land into developed Costa Rica real estate have been met with increasing popularity, and many more people have signed up to become landowners in the last several years.

One of the most important questions asked by anyone interested in purchasing raw Costa Rica land is, “What happens once the raw land for sale begins to be developed?” In order to effectively answer this question, the process depends on what the raw land will be developed for.

Let’s use this example - If the land will be developed as residential real estate, it will need the expertise of an experienced construction company specializing in land development. This is due to the fact that raw land, once it has entered the developmental stage, to be turned into Costa Rica properties, will need basic requirements such as utilities and roads to sustain habitation.

One of the first tasks in developing Costa Rica real estate would be to survey the land for its various sources of water, and then determine where the septic system should be established and connected to the house.

Once these two areas are in place, the next task would then be to determine where the house should be built. This can be decided, by working closely with a residential construction company, and choosing the best place on the property to build.

Therefore, once raw land is developed, it can go from being a parcel of property, to a beautiful patch of land worth a whole lot more. This is one of the main benefits, of investing in raw land development. The price of the raw land will increase in value as the development on it continues. So not only will you be acquiring and developing the land, but you will also investing in the country of Costa Rica.

Another main benefit of purchasing raw land would be the fact that it is undeveloped land, and you would be the first to live on it. This would mean you could build almost any type of real estate as long as it has adhered to zoning regulations, and in Costa Rica you will find minimal restrictions, if any. There would be no difficulties with the land previously being spoiled by anyone, because you will be the first to live there. This is definitely a huge bonus of raw land acquisition.

A third benefit of purchasing raw land is its appreciation value. There is a considerable difference in the price of the property when it is raw land versus developed and again when a dwelling is built upon it.

As you can see, buying undeveloped, raw land has many worthwhile benefits and opportunities that lead to lucrative investments in Costa Rica property.
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