Vacant land can be a great investment to developer and homeowner alike. A well-chosen lot can be sold to a developer, developed by the owner for resale, or developed for personal use (primary, secondary or vacation home).
Buying Vacant Property
Many people think that vacant lots are only for professional developers or for those who wish to build their own home. However as an investment, a vacant property can be a great choice. Buyers have the opportunity to buy land in a growing area, and then sell it at a higher price. There's also the option to sell the land as commercial or residential property.
As with other types of real estate, vacant land can be found in a wide range of prices, making purchase viable for all levels of investor. If you are considering buying a lot and then building on it, doing your own construction can be much cheaper than buying an existing home.
Making a "ground floor" investment - an investment in undeveloped land - requires some forethought and a lot of research. The questions of where to buy and which properties may be most profitable are only answered by someone with education and experience. Knowing your community and the future of development is very important when deciding where to invest.
Walk the land that you intend to purchase, so you can see yourself whether it is suitable for your purposes or the purposes of the people you hope to sell it to. Nothing, not even pictures, is a substitute for touring the length and breadth of the land that you are thinking of buying. At this point, you can also enlist the help of people who live in the area to give you a better idea of what the land is like year-round. Perhaps the dry, firm path you're walking on turns into boggy marsh in November. You won't know unless you have someone in the area tell you how the land behaves throughout the seasons.
Make sure that you stop at city hall to learn about local water and sewer codes, zoning restrictions, and chain of title. Then, pay a visit to the assessor's office, where you will be able to find tax information, records of flood-zone boundaries and proximity to wetlands, easements, and any restrictive covenants established by previous owners.
A real estate professional who knows the area well can be invaluable. A professional can be especially helpful if you are new to real estate investing and vacant land buying. They will know what questions to ask, where to get answers and which properties are likely to give you a good return for your money.
Contact us for more information about buying vacant land.