Business News Update: Land has been a commodity that has been looked upon as an investment for generations. The general understanding is to obtain land for housing or commercial purposes. However, land purely as a tool of investment has increasingly become an area of interest. The annual increment of land value every year is stipulated to be around 30% – 35%, making it one of the surest and most profitable investment tools.
As such, careful thought should be put into choosing the land that carries the best return on value. Sharing his thoughts about best practices in selecting a land to be invested in, Yatila Wijemanna – Chairman, CBH Lands stated, “One of the key points to consider is the location of the land. For instance, Kurunegala is a boom pocket, and land value there has a higher potential to increase over the next few years”. The second most important factor is to discuss the time period in which one would expect a growth in return. It is also essential that one choses a developed land where proper development guidelines have been followed, with regard to electricity, water and drainage systems.
Working with an organization that is experienced in real estate and investment consultancy, will allow maximum return on investment. Pre and post-sale client service is crucial as land is a long term investment, and not many companies specialize in this relationship. “We have clients who have bought their land from us, and a few years down the line, return to us to re-sell. CBH Lands has mechanisms that can facilitate this requirement, thus building a long term, loyal clientele,” added Yatila. “Following correct financial models that benefit the client is vital, because they entrust their whole life’s savings to us sometimes,” he further explained.
CBH HIM is one the latest financial models created by Yatila and his team to encourage those with disposable income to view investment on land as a potential. Based on years of experience and analysis of land value, models such as this ensure that value is added to the client’s investment. The CBH PS model serves the public sector, with its own unique features based on the value, duration and other factors of investment. “We have a great example of a client who purchased land from us for Rs. 50,000 per perch in 2017. This year, he is selling the same land for Rs. 90,000 per perch. This alone shows the benefits that come by investing in land that is located in the correct boom pockets,” stated Yatila.
At CBH Lands, identifying the correct location is done by a separate team that specializes in recognizing areas where returns can be maximized. Another team focuses on smooth transaction, clearing all legal processes within the quickest time possible and ensuring 100% transparency. Financial plans with banks are also available to scale off the payment over a period of time, thus giving the clients flexible methods to make one of the biggest investments in their lives.
“Lands have been the safest investment in the past, at present and will continue to be so for the future. Capitalizing on these opportunities will ensure that one receives maximum returns with time, and this is what CBH Lands specializes in doing,” emphasized Yatila.