Yula.la News

Plot land is the process of a group of individuals such as investors, family, friends, or developers who purchase a large plot of land and divide it amongst each other. Then sell the subdivided pieces to interested buyers for future infrastructure developers.

Finding the right piece of land in the right place, at the right time, and for the right price is the goal of obtaining a valuable land asset. During the purchasing decision process, it's advisable to consider the area surrounding the plot land, future plans for this region, and potential legal issues that could arise.

The purpose of this guide is to inform and educate individuals interested in purchasing plot land on how to evaluate the land, forecast potential problems, and how to best protect their assets. 

Consider the 3’P - Place, Plan, and Process. 

In order to be successful for a plot land project - you should consider the urban development plans of the city and village’s region. Check with the Department of Planning and Urban Development for the city’s development vision. In Laos, development projects are being initiated throughout the country from commercial, residential, tourism, and transportation infrastructure development.

For example, let's say you are deciding between two different areas to purchase plot land. One area is close to the city center and has ongoing development plans where they are building apartment complexes, a hospital, and a shopping center.

While the other area is outside of the city near the countryside - there are plans for a tourist development project because it is near the railroad. The first location will probably cost more, but that means your land asset will be more valuable to potential buyers who might also want to develop on this land. The second area could be cheaper to purchase but might have risks if the tourist project does not proceed in a consistent and timely manner.

When purchasing a plot land you want to consider the present situation for the nearby areas surrounding it and the future development plans that could make your asset more valuable to potential buyers.

It’s important to research the location where the plot land project is located. 

Try to conduct due diligence by scanning the local environment from about 500 to 1,000-meter radius to check for existing or future developments, infrastructure, amenities, and facilities that can increase the standard living index for residents living or near this location.

In addition, as mentioned above check with the government urban development plan and seek information for private investments that could help increase value to the plot land or could create risks that devalue your asset.

Next, identify when the location will be desirable to potential buyers. Development takes time and money. Some areas could take 10 or more years before it is scouted by investors of the government. 

Also, consider the worst-case scenario for natural and environmental disasters. Identify if the area could potentially flood or have landslides. This could devalue your asset and keep potential buyers away.