It is never too early to start preparing for your retirement and invest in Blue World City, and as we mention in all our articles, real estate is the safest investment you can make, and that brings the greatest long-term benefits.
Securing your future should be one of the priorities of anyone who wishes to spend their retirement years quiet and reaping the rewards of their efforts inactive years.
Acquiring a property allows you to have your capital in a tangible asset and in this way protect it from inflation, in addition to being able to generate extra income.
In this article, we will tell you everything you need to know about investment lots, their main characteristics, and the advantages of acquiring them to ensure your retirement.
What is an investment lot?
To begin, we must define what is an investment plot of land, and in simple words, we can say that it is a property – a delimited extension of virgin land – that is located in an area of future development, that is, it does not have construction or urbanization around it.
These lots are usually without urbanization, however, there are real estate agencies -such as BMF Inversions- that sell the land already urbanized and with a project ready to be developed, this is based on market studies that guarantee the success of your investment.
This type of land is worth it since they are cheaper than the traditional ones and can make your money grow in the medium and long term, of course, this will depend on choosing the ideal lot according to your needs.
Types of investment lots
The first step that you must take before acquiring an investment lot is to develop a business plan that establishes the use that you will give it, this will be a key point that will define the success of your purchase and will help you define the type of lot that you should buy.
To help you with this, we will talk to you about the types of investment land that exist and the uses that are given to each one. These can be divided into:
- Residential lots
- Industrial lots
- Commercial lots
The residential lots are those that are destined to house rooms and are within developments such as private or subdivisions.
Being part of a residential project, they have the advantage of having services such as drinking water and electricity, in addition to having paved streets —depending on the type of construction project— and that in some cases the construction company provides the plans of the project to be developed.
In other cases, choosing this type of land instead of buying a home that has already been built provides greater freedom to make the home to your liking and according to your needs, in addition to the fact that it is also cheaper to acquire the land alone – especially – if it is a presale.
If the lot is located in a residential area, they acquire additional benefits that increase its value with exclusive amenities, for example, green areas, clubhouses, parks, and private security.
Another use that is given to residential lots is to acquire them in areas of high capital appreciation to put them up for sale again and obtain a profit without much effort.
Industrial lots are those that meet the needs of industry and need to be a little further away from the urban area, unlike commercial and residential zones. They are ideal for projects related to the production or protection of raw materials.
This type of land is usually larger and depending on the industrial sector in which they are used, they require the appropriate land use permits, especially if toxic materials are handled.
Some examples of industries or businesses that can be implemented in industrial lots are:
- Manufacturing factories
- Consumer products factories
- Water treatment plants
- Distribution centers
- Among others
In general, there are spaces designated for this use on the outskirts of cities, and they are known as industrial parks, which encompass different types of industries in the same space.
If you already have a business that you want to expand and save on leasing, industrial land is an excellent business opportunity because it will allow you to grow your investment and increase its value over time.
Commercial lots —as its name indicates— are aimed at the commercial sector and are focused on companies and small businesses, that is, they are land destined to be premises or commercial plazas where new businesses are placed or to expand an existing one.
Checking that the location of the land is optimal and has a sufficient flow of people will be a key piece for the success of your investment. According to the type of business, you can determine if the area is suitable for the business your project is directed to.
For example, in the city of Mérida, the northern area is the one with the highest added value, and generally, the businesses are focused on a high lifestyle, as is the case of shopping centers with important brands.
The vehicular influx is high but not so much in the pedestrian as is the case of the eastern area, which is focused on smaller businesses and of common use such as laundries, grocery stores, stationery stores, among others where the use of small shopping malls that cover different needs.
In addition to this, you must consider its proximity to residential areas and accessibility such as main streets or avenues. If you want more information about the best locations to build a profitable business in Mérida, we recommend the article we have prepared about it.
Choosing the right location for your line of business will guarantee your investment and provide you with profits in the medium and long term.
What should you take into account before investing in land?
These are some points that you should take into account when buying land in a commercial area:
1. Land use
When buying land for commercial purposes, it is important to verify that you have defined the land use, because it is a process that takes some time and can delay your business plans.
One benefit of land in a commercial zone is the use of the land, which allows establishment of various types of businesses.
Even if what you plan is to wait for the value of the land to increase to put it up for sale or lease it, having this step ready will make the process easier and it will be easier to find potential clients or tenants.
Although it is more economical to acquire a ¨rustic¨ land – which does not have a defined land use – it will only be a viable option if you have no problem waiting the necessary time to complete the process.
The same applies to land with residential and industrial use. Make sure the land use is what you require for your project.
As we mentioned in the section on commercial lots, when it comes to land for business the location is essential and will depend on the business and the use you want to give it.
For example, if you want to lease it to a franchise, you must consider the requirements that they ask to proceed and among the main ones is the location. They generally look for land on corners and on avenues or in high-traffic malls.
Now, if we take into account the location for a residential area, consider that capital gain plays an important role when choosing. Buying in an area that guarantees an increase in the value of the property is one of the safest medium-term investments.
Some factors that increase the value of residential land are the proximity to hospitals and schools, accessibility and services in the area.
As for industrial lots, you must make sure that the location is ideal and for the industrial focus of your company and that it is not near residential areas that could be harmed.
3. Legal status of the land
Verifying the legal certainty at the time of buying land will save you inconvenience during the process if something unforeseen occurs, in addition to guaranteeing that your capital is safe and that the payment of the corresponding taxes has been carried out.
For this, it is necessary to obtain information and hire legal advice – in case the real estate company does not have it – to know the process of buying and selling in the place where the land you want to buy is located since this varies from state to state. other.
In our article How to deed land in Yucatán? We tell you what the process is like in this State and the steps you must follow.
Advantages of investment lots
Investing in lots brings with it many benefits, especially for retirement, because they are future investments that guarantee your capital.
Among the main advantages of real estate investment are:
1. Minimum investment
Most of the real estate companies that handle this type of investment have financing plans for months without interest and with a reasonable down payment which will vary from one real estate to another.
The accessibility that the purchase of an investment land provides is ideal for those who do not want to invest their capital at once or for first investors or entrepreneurs who are facilitated by paying monthly installments.
2. Low prices
Buying an investment lot is cheaper than acquiring a property already built, whether it is a home or a premise, this allows you to buy below the market price and later obtain a profit from the property.
Although there are excellent opportunities to buy at a low price, you only have to confirm that it is a legal lot and not common land.
3. Low investment risk
In addition to the fact that they are cheaper and you can acquire land with minimal investment, the risk that something will go wrong is really low, especially if you put into practice the advice that we have given you throughout this content.
Investment lots are ideal for those who want to start preparing their assets or make it grow, and in this way ensure a quiet and well-paid old age.
There are very few cases where it is counterproductive to invest in a lot, however, with the legal certainty of the property and a good location, the risk is almost nil.
4. Maintenance expenses
The maintenance costs of an investment lot are minimal since you only have to try to keep it clean and clear or when it is not in use, and that the payment of taxes is kept up to date, as is the case of the property which is paid only one Once a year.
The Mexican southeast, the best area to invest in real estate
In the Mexican southeast, you will find many opportunities to invest in Quintana Roo and Yucatán, which are states that have stood out in the last decade for the number of projects and real estate investments that have been developed.
Due to their tourist and business attractiveness, in addition to their infrastructure, they have been a central focus of national and foreign investments in recent years, opening an opportunity for new investors to implement successful projects.
Real estate investments in this area kept their numbers stable even in the crisis caused by the COVID 19 pandemic, showing that it is safe to invest even in times of crisis and make your money grow.
Secure your retirement with accurate investments
There is no better way to prepare for retirement than investing your money in the real estate sector, however, you may not have a defined business plan of what to do with the property, so we have an article where we give you some ideas of business to do with the land.
At BMF Inversions we have 25 years of success in real estate and commercial projects, market studies that guarantee the capital gain of the commercial land we manage, with certified advisors to support you and answer your questions throughout the process.