If you own an undeveloped piece of land, you may have sometimes wondered, “Where can I sell or rent out my lot?” After all, not everyone has the time or resources to transform their land into high-value property all by themselves.
A quick way might be selling your lot to the highest bidder you meet. But this can be a less-than-ideal solution especially if you’ll look into its earning potential in the future or if you’ll consider the sentimental value of the property you’ve inherited or bought with your hard-earned savings!
Thankfully, CitiGlobal presents a way for you to profit from your unused lot without having to sell it or spend too much on development: land partnership. Here’s everything you need to know about land partnership in the Philippines!
The Essentials of Land Partnership in the Philippines
What is Land Partnership?
Land partnership is a collaboration or a joint venture where landowners and developers work together to create a new land enterprise. It presents a different model from a traditional property sale, where the landowner stops earning from their lot after it is sold. With land partnerships, both the owner and the entrepreneur continually profit from the development!
How Does Land Partnership Work?
During a land partnership, a landowner comes to an agreement with a representative of the developer. They will decide between two options for the landowner to earn from their lot once it is developed:
- Sharing property income
- Owning units in the developed property, which the landowner can sell or lease for profit
After this, the land entrepreneur begins construction on the property according to a master plan. Depending on what the entrepreneur has in mind, the lot in question can be transformed into almost any type of development. To give you an idea of all the possibilities available, previous land partnerships have given rise to:
- Condominiums
- Residential areas
- Hotels or resorts
- Commercial buildings
- Mixed-use development communities
What Are the Benefits of Land Partnership?
The idea of a land partnership is actually surprisingly simple. However, the same partnership can benefit both parties involved, as well as future tenants and investors! Here are 4 solid benefits which you can enjoy if you enter into a land partnership.
1. Maximize Property’s Earning Potential
Did you know that a land partnership can boost your lot’s value by 100% to 1,000%? You’ll be hard-pressed to get the same benefit from plainly selling your lot! The constant presence of tenants also provides you with a steady source of income.
Plus, if you decide to own units in the developed property, you can pass these to your children to further increase the property’s value.
2. Expand Your Network
Land partnerships won’t just introduce you to a reliable developer for you to work with. You’ll also get to talk to people from different sectors, opening up countless opportunities for you to grab in the future.
3. Stay One Step Ahead of Trends
You might think that your lot is located in a place that’s easy to ignore, tempting you to simply sell it off. However, urbanization can quickly turn your lot’s location into an accessible hotspot for real estate development. Enter a land partnership instead, and you can find yourself in a pioneer position once companies turn your area into a new commercial zone!
4. Win-Win Negotiations
Instead of selling your lot, you’ll get to see it grow into an asset that benefits your entrepreneur partner as well as future tenants of the finished development. If your location turns out to be a potential business or tourism hub, you can expect inquiries from businesspeople and travellers alike!
At the same time, you can help land entrepreneurs develop their skills in the industry without being held back by the costs of outright purchasing new land.
Why is CitiGlobal an Ideal Choice for Land Partnerships?
A large part of the success of your land partnership depends on the real estate developer you choose to work with. You’ll want to find a reliable developer who’ll provide the most value for your lot and your partnership!
One developer you’ll want to consider is CitiGlobal. We understand how much our land partners value assurance when it comes to agreements with their land at stake. With all our experience, you can breathe easy knowing that your lot is in good hands! Aside from that, our team will treat you not as another number but with the genuine concern of a family member. In fact, CitiGlobal is more than ready to go the extra mile if it means having your project insured and finished as promised!
So instead of selling your lot, why not enter a land partnership and entrust your lot to CitiGlobal? Contact us today to find out more!
Visit our blog for more helpful articles about getting the most out of your lots and properties.
Got Questions About Land Partnerships or Other Real Estate Inquiries?