Raw Land Development Projects

With big players swooping on a particular area, raw land development takes a new meaning. Pumping in of big money makes land development costs rise. Investment in land development at basic stage is a risky proposal as it is more speculative than developed land. Evaluation of land prices becomes difficult owing to its speculative nature, which makes procuring finances for raw land development a difficult job. Raw Land Development and Finances Finances for raw land development become all the more difficult for undeveloped land away from the urban core. Large finance companies and banks prefer financing land development projects that are closer to population. Some big lenders extend raw land development loans to non-commercial clients, apart from those who have existing sewer lines, road access, and other infrastructure. Finance companies that do make finances available for speculative raw land development projects make sure that the buyers contribute 50 percent of the cost, besides paying interest at 10% - 12%, two to three points in financing charges, and avail the loan for about 18 to 24 months only. Finance companies prefer safer land development projects than projects that are waiting for a big opportunity to come by. As lending terms for raw land development projects get tough, seller finance and all-cash deals come into play, which can make raw land purchasing difficult for middle-class buyers. Raw land development financing does not seem very promising, as the land may not generate income for a long time. Raw Land Development from the Dealer View Point Raw land development deals are fetching a higher price than it was a few years ago. Finance and raw land development projects are closely related. Easy land development finance places money in the hands of the big players, who go on a buying spree, escalating land prices. According to dealers, a cut in the easy availability of finances helps stabilize the land development prices. A slow down will lead to a drop in the land development costs. Raw land development projects are likely to take off in places closer to cities. Anticipation of population growth makes investment worthwhile in raw land development projects. Promoting such raw land development projects can help bring in customers preferring to stay away from congested city living.