Cheap land can become very expensive when the wrong assumption is discovered after purchase.
Before acquiring development land, investors should verify at least five fundamentals:
1. Access and connectivity
Is there legal access on the title and practical access on the ground? A road nearby does not always mean the parcel has an approved entrance.
2. Zoning and permitted land use
Planning portals such as iPLAN are useful for preliminary screening, but the applicable local plan, planning authority and required approvals must still be confirmed.
3. Utilities and site constraints
Check the realistic availability of power, water, sewerage and telecommunications—together with terrain, drainage, flood exposure and environmental limitations.
4. Title and encumbrances
Review tenure, category of land use, express conditions, restrictions in interest, caveats, charges, easements and acquisition issues with qualified professionals.
5. Demand and exit strategy
Who will eventually buy, lease or operate the completed development? A permissible use is not automatically a commercially viable use.
Land value is influenced not only by acreage and location, but also by how much uncertainty must be resolved before development can begin.
The objective of due diligence is not to eliminate every risk. It is to identify, price and allocate those risks before committing capital.
I assist investors with initial site positioning and coordinate discussions with the relevant legal, planning, valuation and technical professionals where required.
Fakhrul Imlan | REN 32455
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