The nearby provinces of Metro Manila are sprouting with subdivision and residential villages. Most of them are formerly farm lands that were converted into residential lots. A friend is thinking of getting into that business of buying farm lands in the rural areas to be converted into a subdivision later on. He is now in the process of acquiring investors for that project. The first prospect is a 100 hectare rice field in the boondocks of Laguna. I don't know if it would be successful.
Depends on numerous factors. But I think if the rural areas are developed then more people might be interested in moving back [to the rural areas] and they'll need apartments or houses. Land never is a bad investment. You'll always find someone who is willing to buy. At the very least your friend will get back the money he'll invest.
You are right, @Rainman, land is always a good investment unless a fortuitous event happens like a sinkhole or an earthquake fault. With the people moving back to the rural areas, it is a sure thing because Metro Manila is getting so crowded. In fact, the traffic in Metro is a national concern already - it is the main agenda in the presiden't meeting the other day. Given the growing market of potential residents from the urban to the rural, our only advice to investors of residential subdivisions is to make sure that their lots will not be ravaged by floods.
The good thing in investing on rural lands is the cheaper price of the lands in such areas. Due to increasing population, not to mention the daily stress and pollution people face everyday in the city, it's not such a bad idea to invest in rural properties. One can get a bigger area of land for his/her money compared to only a small portion his/her budget could afford in the city. One just have to take into consideration the state of the land he/she is buying as what you have said. He/she should have a thorough inspection and investigation of he property he/she is buying to make sure that it is not an area with sinkholes or potential earthquake faults. On my own point of view, the return of investment opportunities may take long but land investments are always a win situation because the value of lands accrue in time.
That's exactly the point - the cheap cost of rural lots can give you a good profit when it is sold as a residential subdivision. However, one has to be connected with the local government officials in that rural area to avoid encountering technical problems. Over here, we have the environment law that has restrictions on some areas to be converted into residential village like a natural waterway or a hillside that is conducive to landslides. Another thing is the locals that live near the area, they should give their consent otherwise they might be pestering you with their requests and demands.
