So, you’re thinking about getting into land? Great! It can be a pretty lucrative plan if you play your cards right. But before you go out and drop a bunch of cash on some dirt, there are a few things you should consider.
- First off, check that the land is zoned for what you want to do with it. If it’s zoned for agriculture, you might have a tough time building a mall or a housing development. But even then, Conditional Use Permits may offer you some flexibility.
- Infrastructure like power, septic, and water are also important. Not everyone wants to be out in the middle of nowhere with no paved roads. Existing utilities are a bonus for most foks. But if you prefer off-grid, consider the investment in alternative systems, like solar panels, haul-in water, and space for a leech field (plus a perk test!).
- A Location that fits your needs. Consider somewhere where the average Jane wants to live and do business. For most of us, the closer you are to amenities like schools, hospitals, and shopping centers, the better. But there are always expectations to this rule– remember that privacy is also valuable.
You’ve got to think about the overall market direction too. If everyone and their mother is trying to buy land in a particular area, the prices are gonna be through the roof. But if there’s a surplus of land, you might be able to snag a deal. - Legal access is important when it comes to land investing. You don’t want to end up with a piece of land that’s hard to get to (physical access). Do your homework and make sure everything is on the up and up. Ask the experts questions. Legal access is different from physical access. Just because there’s a road there doesn’t mean it’s a legal road. Talk to a survey processional or the County directly.
- And last but not least, consider alternative financing. Land investing can be a significant financial commitment, so you’ll want to consider your options. Traditional bank loans are very high and vary between 11-14% interest rate (if you can even get a bank loan). Just shop around and see what works best for you.
So, there you have it. Land investing can be a great long-term decision if you plan ahead. Just make sure you do your due diligence and get some expert advice.
Happy land hunting!