Wednesday, May 13, 2009

Subdividing Land for a Profit

Do you know that a land can make you rich? I have seen many farmers becoming billionaire. They just sold their land to some of the top officials and they were able to earn a lot. Now suppose you have 100 acres of land. Do you feel that selling the whole house at one time will earn you the maximum profit? If you think like this then you are definitely wrong. Plotting is the need for the present real estate market. You can always sell the product for less but the champions are those who try to earn maximum profit. In other words it is quiet easy to earn less profit but it is the work of the genius to earn maximum profit.

The question arises that how can you earn maximum profit through your land. The answer is quiet simple and that is by plotting the land and then selling each plot at high price. If you will do this then you will be able to multiply your profit. Your profit will be doubled and you will be in great advantage.

There is no hard and fast rule of the government regarding the plotting of the land. However one thing is for sure and that is you will be spending a lot more on taxes. But there is nothing to worry with this. If you will add the tax with all the expenses then you will fin out that you still are able to earn a profit which is higher than that which you earn by selling the land at once.

The question arises that how can you do the plotting. The answer is quiet simple. Suppose you have 100 acres of land. Then you can plot the land into 100 plots each of one acre. Now you have the right to sell hundred plots to hundred buyers. Suppose the cost of the whole land was $100 billion. And now suppose you send each plot for $2 million. Then when you will add it up then you will find out that you are earning $200 million which is just the double of the first one. Now suppose you have to pay $ 20 million extra as a tax. Still you are earning $80 million which is a huge amount.

However plotting is not an easy job. You will have to be analytic to do this. You will also have to understand that you will have to advertise more. If you will not do this then your project will be a failure.

There can also be another twist in the tail. You can build small houses in each plot then sell it at even more higher prices. Whatever might be the case you will always be able to earn the maximum.

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