20/11/2024
While buying land and waiting for its value to increase is a good investment strategy, you should also be weary of how quick the lease terms runs while in your waiting period.
In other words, while you wait for longer periods, the lease term continues to decline, indirectly discounting the value of the land. There’s a direct relationship between the value of land and lease period. Cet Par, the more the lease period, the higher the selling price, and vice versa.
If there are two plots situated at the same location, with the first having 90yrs lease period and the other 70yrs, then the selling value of the first plot should be higher than the second. In essence, you just don’t buy lands and wait to sell them, be mindful of all the details in your deed before deciding on which tangent to use.
There’re some plots that you must develop. If you bought a land in 2010 and were given 90yrs lease, you’ve already exhausted 14yrs. You only have 76yrs to give out and sometimes, when the buyer gets to know the lease period is too short, they retreat.
The best way to do buy and sell is to get the lands from chiefs or families who have allodial interest in the lands. With that, your chances of getting premium lease periods are high. But if you’ve to buy from someone who bought from someone, who also bought from someone…. While you also want to sell,
Then you should do your computations well before buying the land. You shouldn’t even buy it as expensive as someone buying a “virgin” land.
Years run so fast and before you realize, 20-30yrs of your lease period is already gone.
Sell it if you know you’ll not use it. Don’t wait forever, hoping the price will hit 400m usd. You’ll end up not getting anything in return.
🏡🏡
