Is it your dream to own a piece of vacant land, one where you can breathe fresh air and enjoy the scenic outdoors? Or perhaps you’re just searching for an investment opportunity that could have increased value in the long run.
Whatever your reasons may be, buying vacant land might just be the answer to all your questions! Here are a few reasons why you should make the move toward investing in a piece of land.
Reasons To Invest in a Vacant Lot
Maybe it’s time to consider investing in vacant land! Sure, you could use it for building a home or even your own personal tennis court (imagine the bragging rights!) But why stop there? Here are some reasons why a vacant lot might just be the perfect investment for you.
1. Investment
If there’s one thing that has the potential to grow with time, it’s land. While other investments are more likely to decrease in value as time advances, like a car or technological gadgets, owning land can have the opposite effect, meaning your lot could increase in value. Depending on market conditions, your land, and whatever you have built on it, could be sold for a greater price in the future.
Even if you buy a lot and never build anything on it, you can still receive a good return on investment if you sell it again in the future, as long as the land is maintained.
2. Farming
Do you yearn for the satisfaction of living off the land and enjoying the fruits of your labor? If so, a vacant lot could be the answer to your dreams! With the option to establish a farm on your land, you can say goodbye to grocery store runs for fresh produce and hello to picking your own juicy tomatoes straight from your lot!
3. Building a Home
Investing in a new home is a dream that many desire. There’s nothing better than being able to relax in your own home and not having to worry about monthly rent bills. With a lot, you can leave behind the days of renting someone else’s home and work towards building a home for yourself!
Along with this, you’re given the option to rent out your home to others or host it on platforms like AirBnB to see further gain capital from your initial investment!
4. Recreational Activities
Looking for a place to unwind and enjoy yourself? A vacant lot might just be the ticket! With some creativity and planning, you can transform your lot into the playground of your dreams! Want to create a community get-together center for movies and potlucks? Or maybe you prefer something a little more adventurous, like laser tag or dirt biking.
With a vacant lot, there are endless possibilities! Owning one gives you the freedom to create your own recreational retreat.
Top Factors To Consider
As tempting as owning land sounds, there are first some initial considerations you should take note of when it comes to investing in land. Before you go out there to buy the first plot of land that you see, let’s see what factors should ultimately be responsible for driving you to the decision of buying vacant land.
1. Location
The location should be a top priority to consider when buying vacant land. Choosing the right location can make or break your investment. A couple of components you should think about are the overall safety of the area and the potential for future development. Having your real estate investment in a prime location can increase the resale value of your land, making it attractive to other potential buyers.
On the other hand, a poor location can cause your land to decrease in value over time, making it harder to sell. Conduct adequate research and pick a location that both satisfies your needs and has growth potential.
2. Environmental Factors
Environmental factors may seem relatively insignificant, but they’re actually pretty important! You know, things like the air you breathe, the water you drink, and the soil you grow your crops in. When it comes to buying vacant land, certain environmental factors can have a significant impact on the value of your investment.
For example, if your land is prone to flooding or is located in an area that receives abundant hail, that could spell trouble for your plans in the future. However, if your land is in a clean, naturalistic setting, that could make it an ideal spot for eco-tourism or outdoor activities. So, if you’re in the market for a piece of land, don’t forget to give the environment a little attention too!
3. Finances
As with any investment, you always need to consider its price and coordinate that with your budget. Land property is not cheap, and you want to be sure that you get the most bang for your buck when you invest in something like this. Before purchasing a vacant lot, spend some time researching the current market conditions in the area to avoid any surprises when you hear the prices.
4. Nearby Facilities
Having a lot is great, but what’s the point if your lot is in the middle of nowhere? What if an unexpected incident occurred where you needed to drive to the hospital, only to find out that the nearest hospital is a city away? Unless that’s something you want, try to gauge whether the vacant land is worth purchasing by seeing what nearby areas are located near the lot.
On the other hand, you may have future regrets if your lot was located near a toxic waste dumping site or a noisy, pollution-spewing factory.
Take the time to learn more about the area surrounding the land. Some ideal neighbors for your lot would be grocery stores, hospitals, schools, or recreational areas. See if any of these or other areas are nearby the lot in question to help you decide if acquiring the lot would be a wise choice.
Key Takeaway
Whether it’s for building your own house or for recreational purposes, buying vacant land is no walk in the park. You have to give the land a good once-over, take a gander at the environment around the lot, and consider the costs before sealing the deal.
After completing your due diligence, only then should you put a ring on it! Who knows, this investment might be the best thing since sliced bread and give you years of use.
Building a home on your vacant land? Let Cedar Home Loans help you!
Let us help you finance your dreams of owning a home! Inquire about our Eagle Home Loans in Colorado to make your dream a reality!
