Many of our buyers are not ready to build yet, but they know the area they are interested in. One consistent strategy we’ve seen is buyers that buy land in the area they are interested in as an investment strategy now. They leverage our below-market prices to their benefit, then they buy and hold or re-sell the land at a later date at a profit.
Buying vacant land can be a great investment strategy if done correctly. Here are some considerations to keep in mind:
Location: Location is crucial when it comes to buying land as an investment. Look for areas that are developing or have the potential for development in the future, such as near growing cities or towns, or areas with good access to transportation and infrastructure.
Zoning: Check the zoning regulations for the land to ensure that it can be used for your intended purpose. Different zones have different uses allowed, so make sure the land is zoned for the type of investment you have in mind.
Utilities: Check whether the land has access to utilities such as water, electricity, and sewage. The cost of installing these services can be significant, so it's important to factor this in.
Market Demand: Consider the demand for the type of land you're interested in investing in. We sell a lot of land in emerging growth markets so the buy-and-hold strategy is a solid one.
Financing: Consider how you will finance the purchase. Land loans do have higher interest rates and require larger down payments, however when you buy below market you’re still coming out ahead.
Long-term Investment: Remember that buying land is a long-term investment. It may take time to see a return on your investment, so be prepared to hold onto the land for several years before selling or developing it.
Overall, buying vacant land as an investment can be a good strategy with the right property at the right price.
