LAND & IMPROVEMENTS
Land and Improvements
Land is deemed indestructible and a tangible asset.
When we consider buying real estate most people forget the most obvious, that it is the land that is for sale with all of its improvements. The land has a legal description other than a street number, known as a lot number and a deposited plan.
The land is always a good starting point for valuing real estate as it is this value of a particular parcel of land that will determine the value of its improvements once capital and labour have been applied for its highest and best use.
Land values can vary substantially, as no two parcels of land are ever identical yet it is fair to ask why one lot is so much dearer than another lot when they share similar characteristics.
Land characteristics may be described by improvements, size, aspect, topography, location and zoning.
We also know that land may have improvements; these improvements can be visible and invisible. The visible improvements are usually the buildings and surrounding external improvements such as fencing. The invisible improvements may be underground drainage and plumbing, electrical supplies and gas supplies, now that modern technology is an essential part our everyday living the internet speed in a particular area may have implications.
In some locations land may be subject to mine subsidence and this may have implications regarding the permissible improvements to the land.
Easements also have implications to the development of land, they may be and not limited to underground drains, overhead power lines and right of way.