Investing in Non-Buildable Land
Buying non-buildable land for a few thousand shekels. You’ve thought about it, but not seriously.
You would be surprised to see how this purchase can turn out to be a very lucrative investment! First of all, non-buildable land costs much less than buildable land.
Also, in the short term, it can be quite easily monetized through temporary installations, such as mobile homes, containers, or solar panels and other systems that create value. It can also be rented out to individuals/professionals looking for a garden!
What makes this investment very attractive is the fact that the status of non-buildability can change at any time. With a little patience, it is possible to achieve a significant capital gain! Just like tens of thousands in Israel who are part of the largest families in Israel. Owners who had agricultural hectares in Tel Aviv, Kfar Saba, Rishon Letzion… found themselves overnight at the head of colossal fortunes.
Rental Vegetable Gardens on Non-Buildable Land
If your non-buildable land is located near a city, many people will rent your land at a good price. For example, to create a relaxation space or a vegetable garden for weekend gardeners, professionals, or public organizations!
To do this:
- Necessary installation of a water point to be able to cultivate.
- Easily accessible plot, a well-located land, close to an urban area.
Rental prices for a 100m2 vegetable garden range between 100 and 200 NIS/month. The return can exceed 10% and reach an exceptional rate if you made a good deal at purchase. If you bought 200m2 for 100,000 shekels, the break-even point of your investment will be at 18 months.
Bet on the Change of Status of Your Land.
Investing in non-buildable land does not only mean setting up a vegetable garden!
The status of your land can change, so be patient; your lifestyle could change very quickly.
Indeed, land is often deemed non-buildable because electricity cannot be installed or connected to water or sewage systems. Development work can change the status of your land. Thus, an urbanization project, construction program, suburban expansion, or city connections could reach your land.
Israel aims to build more than 1.2 million housing units by 2020.
If your land is non-buildable due to a legal obstacle, the law can change at any time.
Similarly, a change in Mayor can result in a change in urbanization policy. Indeed, the future of your land depends greatly on your municipality’s urban policy. It depends on whether your municipality’s priority is the protection of rural areas or, on the contrary, the increase of its population, and thus the construction of new housing.
