A lot of land is perhaps the most overlooked of all real estate properties.
In a market flooded with properties that sell off house and lots, buying a piece of vacant land seems counterintuitive.
However, it’s a great investment for various reasons.
An empty piece of property presents a lot of potential for prospective buyers. You don’t have to deal with a deteriorating house or structure crying for repairs or renovations. You just have to ask yourself one question: Is the land suitable for building?
If the answer is yes, go ahead and purchase the property.
- Inexpensive investment
Raw land is a good, inexpensive investment. You don’t have to shell out money for maintenance, mortgage, utilities, and the like. It is the perfect investment piece for people who simply want to own property with zero management on their part.
- Safe investment
Owning land or several parcels of it is an effective way to invest. It is even better than putting your money in the bank. When you purchase vacant land, you are putting your money into a tangible, fixed asset that is virtually damage free and theft proof. You can simply buy vacant land and walk away from it. It does not depreciate. Come back a few years later and it is still yours.
Before parting with your money, however, consider these things:
Think about how you will use the land in the future. Check if it’s easily accessible, with good roads leading to and away from it. Make sure the area is not prone to flooding and other natural hazards.
- Restrictions and ordinances
Vacant lots have a lot of potential, but only if it meets the area’s restrictions and ordinances. There’s no point purchasing an acre of land to turn it into a grazing field if the authorities won’t let you do it. Align your purpose for the land with existing rules and regulations.
Make sure the land has basic utilities like water and phone connections and electricity lines. This is of prime importance for investors looking for land to turn into residential or commercial areas.
- Land survey
Check out just how far the land goes, and if it overlaps with an existing property’s borders. It would do well to have a new survey done on the property, even if an old one exists. Outdated surveys pose a problem for future buyers. A survey is also necessary to inform a buyer if the land has any issues concerning elevation, flooding, and others.
Perhaps the most taxing aspect about buying real estate property is checking and getting necessary permits to ensure that any transaction or action done on the property is well within the realms of legality. The right permit keeps you from running into trouble with the law.