Are you wondering how to utilize your hard-earned money and earn significant returns without worrying about losses?
Financial investments are the most favorable alternative for growth to simply watching your money sit idle in banks. If you are aiming to invest for long-term plans and earn significant returns without worrying about the risks, real estate investments, specifically investments in raw land are your key.
Talking of the real estate investment market in USA, as per reports, the value of underdeveloped land here is approximately $16000. Real estate experts state that there are abundant acres of underdeveloped lands that can bring you wholesome returns.
If you are a novice investor in the real estate market, it is natural to wonder if buying underdeveloped is a good investment idea. To clear your confusion, and make an informed investment decision, read this blog till the end.
Table of Contents
What is Underdeveloped Land?
To decide is buying underdeveloped land is a good investment land, let’s explain to you in brief what underdeveloped land is.
In simple terms, underdeveloped land refers to a property or piece of land that lacks any kind of human infrastructural improvement. Thus, you can find underdeveloped land for sale in a natural state or very less instances of development.
Buying such property for land investment practices holds several benefits as it offers infinite potential for future development. After buying underdeveloped land, you can utilize it for diverse purposes such as agricultural, commercial, residential, recreational, development, or conversational.
However, you must have a thorough idea about your investment goals, and overall budget to go ahead with this.
Why Buying Underdeveloped Land is Considered a Good Investment?
The choice of whether you must invest in developed land or underdeveloped land relies largely on your objectives and budget. During your research, you might come across several suggestions on which land to choose.
However, even in immense confusion and temptations, consider abstaining from falling for ‘he said/she said’ judgments. To help you make an informed decision, here are a few points you might like to consider while deciding on buying underdeveloped land for sale near me.
1. Control Over Development
Very often, purchasing already developed or used property limits your options to utilize the same in different ways to fulfill your investment goals. Whereas, by buying an underdeveloped land for sale, you have the freedom to utilize the property in any way to fulfill your goals. That being said, you must be aware of the zoning laws and the land quality before purchasing. This is a helpful measure to avoid any instance of government or natural interference on the path of your real estate investment goals.
2. Lower Maintenance Expense
This is another important perk you must note while pondering upon is buying underdeveloped land a good investment.
When you buy a property with a significant amount of construction or development activities, you would need to spend a good amount to maintain the property well during your ownership tenure. Furthermore, such properties tend to carry higher property taxes and mortgage interest rates.
On the contrary, you do not have to pay a hefty development expense to maintain an underdeveloped property. Here, you would only require to cover the necessary costs to ensure the property demand and value appreciate with time.
Furthermore, you can purchase the cheapest underdeveloped land for sale in the US with a high potential for future value growth. Such properties also tend to come with flexible zoning rules and lower property taxes. Moreover, lenders also tend to charge comparatively lower mortgage interest rates while buying underdeveloped lands as compared to their developed counterparts in similar locations.
3. Privacy
Very often, you can find the best underdeveloped land for sale convenient for your finances and goals in rural or remote locations. Such a location offers your land privacy from the major hustle and bustle of city life. Thus, purchasing such property can be a boon in disguise if you are planning to utilize this land investment opportunity for non-residential purposes.
Staying away from the city offers you the opportunity to utilize the land for sale for innovative purposes like developing and leasing it as a warehouse. You can also utilize the property for natural energy resource development projects or build a park or natural habitat for flora and fauna.
4. Long-Term Asset
If your goal is to venture into real estate investment to materialize your long-term investment plans, purchasing raw land for sale should be your move. This is because one of the major reasons for buying land is the higher potential of land’s value to grow in the long term than any other assets.
As discussed earlier, the cost of purchasing raw land is comparatively less than developed lands. Furthermore, as these are underdeveloped properties, you can explore them more than the latter regarding development practices to earn better ROI. This makes underdeveloped land investments a go-to option if you are planning to hold the property as a long-term asset.
5. Higher Flexibility to Use
The flexibility of utilization is another advantage for you to consider if you are wondering is buying an underdeveloped land good investment.
On purchasing raw land, you can utilize it as farmland, hunting ground, renewable energy reservoir, stadium, playground, house, shopping mall, and the list can go on. Whereas, if you purchase an already developed property, say land for sale with a building or remains of farming activities, your option to utilize it as per your goals chops down.
Nevertheless, if you are still adamant about utilizing the developed land as per your goals, you would need to demolish the existing developments. Thus, the process of redeveloping the property can burden your finances in the long run.
6. Affordable
If you are a novice investor and wondering should I buy an underdeveloped land? Here is good news for you.
As compared to developed lands, underdeveloped or raw lands are cheaper and more affordable. While judging the affordability of land, you would like to consider the property’s overall expense along with its purchase price.
In this context, real estate experts suggest novice investors opt for rural or underdeveloped land. Such land for sale does not carry huge development and maintenance costs and its purchase price is also lower than lands with a certain amount of development activities in the past. Furthermore, lending institutions also charge more convenient interest rates for purchasing underdeveloped lands than their counterparts.
This reflects the affordability and growing demand for underdeveloped lands for sale in the USA. Furthermore, with certain authentic land listing houses, like APXN Property, you can purchase land without worrying about a low credit score. To fund your plans, you can opt for alternatives like owner financing over mortgage loans.
7. Better Chances for Appreciation
Finally, to ease your decision-making process regarding is buying underdeveloped land is a good investment, you must remember this point.
Underdeveloped lands for sale are mostly situated in locations that have the potential to grow in the future. Consequently, the demand for properties nearby will grow with time so will their values over the years.
However, in the case of developed lands, this chance slightly lowers depending on the condition of the existing developments, investors’ purchase trends, and most importantly competitor markets.
Bottom Line
To conclude, these seven reasons above will help you decide is buying underdeveloped land is a good investment or not. By knowing these reasons, you can explore the real estate investment option and purchase land following a comprehensive land investment guide.
So, if you are looking ahead to grow your finances with real estate investments and are searching for the best opportunities, we got you covered.
Explore our website for listings and updates on rural or underdeveloped lands in Oregon and other prominent parts of USA. You can also connect with our experts at APXN Property for any assistance regarding property search as per your goals or investment procedure.
