The land is a limited resource though it is economical and offers an abundance of opportunities to attain profits. If bought as an asset to hold, it can appreciate over time to be sold later at a higher price. Also, rural land is a great source to generate passive income through lease or rent.
Beyond the shadow of a doubt, land investment offers numerous benefits. Investors can opt for rural land investment to diversify their investment portfolio and gain higher returns. Yet, it is crucial to choose the right piece of land in a suitable location.
As stated by the U.S. Department of Agriculture, over 900 million acres of land are available in America. When it comes to raw land investing, an investor must be good at buying land at cheap rates.
Nonetheless, there are a few things to keep in mind when purchasing raw land. Today, we’ll discover some proven ways to pick the best land investment that can maximize ROI.
The size of the land should be according to the purposes it is purchased. A large tract of land is suitable for hunting, timber, and growing crops at a large scale. On the other hand, a small plot of land would be appropriate for home development.
Buyers who purchase rural land expect extra space to grow vegetables or raise animals. If you want to buy land lots to sell at higher prices, then you can buy a large land tract on which a buyer can start a garden or raise animals.
Market lulls are an opportunity for buyers to purchase rural land at the best price. If you can offer cash to buy land, you are more likely to get the best deals. Also, there are several rules and regulations to keep in mind. The price of land and home development cost should be similar to neighboring properties. Otherwise, you may not qualify for a home development loan.
Check Access to Water
Water is one of the essential utilities on which the value of land can vary. Most renters and buyers prefer buying rural land that has easy access to water. The rural landowner needs water to completely utilize the land for different purposes, such as gardening, recreation, farming, or hunting.
The rural land with water availability will attract potential buyers to purchase it. For instance, you can make more money selling your subdivided land to different buyers who intend to maintain a garden or livestock. Land that has sufficient water is more appealing to farmers and hunters.
Learn About Zoning Restrictions
Zoning laws ensure a property is used for appropriate purposes to protect or maintain its value. Local and national authorities categorize properties under a few zones; residential, agricultural, commercial, and industrial.
As per zoning laws, residential property is for single-family homes— commercial property is for business services, industrial properties are best for manufacturing, and agricultural property is best for farming purposes.
Thus, it’s crucial to first determine the highest and best use of the land before purchasing a property. If you need land for farming, ensure you buy a property that is zoned agricultural. Likewise, potential buyers looking for land for commercial, residential, or industrial activities should opt for a property accordingly to leverage all the benefits.
Generally, urban areas and surroundings are very restrictive. However, rural areas have fewer restrictions. So it’s recommended to choose the region and buy land wisely as per your needs and expectations.
Whether you are interested in farmland, raw land, hunting land in Oregon, Arizona, Florida, or any other state, check out our land for sale listings. APXN Property is a trusted place to buy rural land in USA, offering customers exclusive land buying opportunities with instant equity with a money-back guarantee.