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Mauser & Tobin Blog

Factors That Affect Land Value

4/2/2018

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Location is one  factor that has a major  impact on land value. Owning  land is a great asset and it  can also be a very good investment. Before purchasing land or developing it into an estate, careful consideration should be given as to where it is located. As a landowner, it is a must to gain knowledge about these factors in order to  thoroughly manage an estate.
Here are some instances that prove location can cause either an increase or decrease in land value.
 
1. Urban vs. Rural Area

Properties in urban areas are more desirable because of its strategic locations. It is particularly beneficial for business purposes since it is densely populated and the target market is bigger compared to that of  rural areas. Hence, there's more of a chance of getting a bigger profit.
 
When it comes to residential purposes, many people would choose a location that is near important establishments like hospitals, schools, workplaces, supermarkets, shopping centers and many more. Demand is directly proportional to value when it comes to land.
 
2. Regulations and Laws

There are existing zoning regulations that have a great influence on how a property is developed. The more an area of land is subjected to regulations, the less options it has and the longer the process takes for it to be developed. In addition, since business options and allowable spaces are limited, the demand for it decreases.
 
However, if the estate is considered by law as a historical landmark, its value may increase or decrease, depending on the situation. For example, since it is protected by the law, construction or development around it might prohibited. But because of its impact on history, its fame can make it more appealing and desirable to the market.
 
3. Mode of Transportation

If the property is accessible to all kinds of transportation, then its value increases. This is because almost everyone can check it out and all kinds of businesses can be accommodated. It will also be advantageous to put up residential establishments since public transportation is not a problem. There is also a bigger chance of further developments and business ventures.
 
There are other factors that are directly linked to the value of land. Every landowner must be aware of these  for asset management. We offer insurances that are designed specifically for land ownership and  asset protection. At Mauser & Tobin Co., Inc., we aim to provide comprehensive insurance policies that makes your life easier. You can get more information about our products and services by calling our agency at (516) 747-0171. Get your free quote today by CLICKING HERE.

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