People say that it’s smart to invest in real estate, although true, other alternatives can be cheaper and have lower risks. One of which is investing in vacant lands.
Why You Should Invest In Vacant Land
Low Maintenance. The best thing about vacant land is that it’s empty. In other words, there’s nothing to maintain. You wouldn’t have to check for broken pipes and walls regularly, and there’s nothing to steal in there. Perhaps you’d regularly go there to check if there are illegal structures and settlers, but that can be easily fixed since they’re technically trespassing on private land.
More Affordable. Vacant lands are relatively cheaper than developed lands that already have structures on its premises. Additionally, the fact that it costs almost nothing to maintain as there are no structures, pipework, electrical systems, and such to that needs maintenance. Plus, it doesn’t depreciate but has the potential to be worth more than when you bought it.
More Freedom. The lot is your canvas; you can opt t develop it in the future or not. You can wait until the nearby area develops and its value soars, then sell it for way more than you paid for it.
Reminders Before Investing In Vacant Land
Work With A Professional. Just like when you’re working with a real estate agent to know the ins and outs of a property when you’re purchasing a house, it’s best that you hire an agent that is experienced in negotiating land deals to ensure that you’re getting the best deal out of your land purchase.
Beware of Hazards. You’d want to make sure that the land you’re purchasing has a low risk of natural hazards such as flooding, mudslides, landslides, and land erosions. If you’re working with a professional or a surveyor, they’d be able to help you assess any potential natural risks and hazards throughout the wet and dry seasons.
Buy Before Upcoming Trends. Land is cheaper when there are no nearby structures or if it’s not in an area that has bustling commerce and traffic. As such, it’s best to buy land when there is news of upcoming developments in the area as its value would significantly increase once there are nearby commercial structures and other developments. In other words, it’s best to purchase land when you’re anticipating that it would increase its value in the future due to economic shifts and developments.
Get Title Insurance. This is perhaps one of the most crucial tips when buying vacant lands: get comprehensive title insurance to ensure that you and your property are protected.
Ready Your Finances. Unlike purchasing a home through a mortgage, it would be more difficult to get a loan when investing in a plot of land with no structure. As such, you’d have to prepare at least about 30% down payment when purchasing vacant land, and have to search hard for lenders with reasonable terms.
Hire Your Surveyor. If you’re thinking about buying a plot of land in Park City, Utah, you’d want to hire your land surveyor and not just take the word of the seller’s old survey. Certified land surveyors can help you properly plot out the entire property and its boundaries, and can help avoid any disputes with regards to boundaries as well as any issues with adjacent land and properties.
Investing in vacant land can be safer and cheaper, and require no or little maintenance. But as with all investments, it’s important to be wary of all possible issues and work with professionals to make the most out of the investments.