Investment opportunity on landlocked land

Investment opportunity on landlocked land

  When it comes to the topic of landlocked land, the general public usually has a negative investment view. Landlocked land is often seen as an invaluable asset which carries no gain but burden, a risky asset to be holding on. Therefore these lands become unwanted. However, smart investors have to view this differently from the general idea and see this as another investment opportunity, in which low investment may result in high profit. In other words, it is considered as a high risk – high return investment option. With the basic knowledge that we have prepared below when evaluating the prospect of investing in landlocked land, the decision can be made reasonably.

Investor preparation:

Learn to inspect the cadastral map/land map provided, the Land Department – Investors will need to have the knowledge and expertise in the inspection of the land map made available at the Land Department to prove the actual position of the land by themselves. An in-depth review is shown on the right picture.

Learn to perform a quick preliminary inspection of the land map for accessibility of the land, available online – Investors need the tools to be able to track land positions and screen the unimportant information.

Learn how to run the valuation model – investors have to make their own decisions based on the behavior or trend of the land price. In this scenario, it would be appropriate to compare the value of landlocked land located into the street with another landlocked land located next to the main road.

So where can we find these landlocked land?

         Landlocked land is not easy to find. Therefore, when one comes around and an investment opportunity presents itself, the decision must be made quickly and thoroughly. There are ways to search for these lands.

  1. Look for the general property sale announcements – Announcement for sale of both vacant land or land with buildings. Be on a lookout for sale announcement signed along any main roads that we are interested in. When we identify a plot of land next to the road which is available for sale, we have to look further at nearby plots to see if they could be landlocked. If there is, we can proceed to negotiation with the owner of the lands.
  2. Look for the announcement of inner plots of land up for sale – This method can be viewed from an announcement or by inquiring the locals who may be aware of available land for sale. Most of the time, inner plots of land can be identified from the sale of a bigger plot of land. By looking at the land map, we can then determine the route for accessibility of the land.
  3. Look for the auction sale announcement by the Legal Execution Department -This is the source where you will find many lands and properties available for sale through auction. Hence, there is a good chance you will be able to find landlocked land up for grabs while others tend to overlook. Before entering the bidding process, you must study the possibility of finding a route which will serve as entrance-exit of the land. Moreover, we have to take into account the cost of acquiring this entrance which will only accumulate to the total cost of purchasing the land. The target investors you are looking to sell to for profit gain have to be identified, usually, land development companies. It would be our advantage if we could estimate the approximate project development cost for these firms allowing us to propose an appropriate selling price which is fair for both parties. Lastly, we can suggest the most appropriate and convenient accessible route as entrance and exit to be acquired by applying for easement in the next step.
  4. Follow the update on new expropriation project The expropriation line related to state projects such as construction of a new road. These new roads could potentially open up opportunities for land with no access to the main road. Investors with in-sight updated information on these ongoing and upcoming projects will have a better chance of exploring and buying with hope of making profit in the future once the project is complete.

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Independent Valuation Company Thailand

We provide property valuation services listed on the stock exchange and all banking institutions. We thrive to maintain performance standards and continually develop the property appraisal profession in Thailand to match that of the international level while upholding etical practices in which we instilled in our appraisers.

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