Vacant land is among the most profitable real estate investments in the world. But just like any other investment, it will only benefit you if you invest in it after proper research. You have to consider different aspects that will determine the future value of your land. If it’s your first investment, then this guide will lead you to make a safe investment. Here are the top three things that you should do when buying vacant land:
Determine The Zoning On The Property
The first thing you should determine is the best and highest use of the property. To know that, you can take the help of your local zoning and planning departments. You can simply make a call to them and ask all your zoning related questions. Once you know your property’s zoning classification, such as commercial, industrial, residential or agricultural, you can ask the zoning officer to give you the details about the restrictions. If the land fulfills all your needs and requirements or your future customers’ requirements, you can think of moving further to the buying procedure. Whether you invest in “vacant land for sale on EMI” or “land for sale in Texas,” determining the zoning is vital.
Vacant land investments require immense patience. You don’t know when your land is going to give the maximum ROI. Most investors wait for the prices to get high so that they can earn a good profit. If you tend to hold your land for long, then beware of the tax bills. There are many cases when people have to pay a considerable amount for tax, which depends on the land’s value. A reasonable annual tax amount mostly falls in the range of 1% – 4% of its current market value.
So next time when you see advertisements like “land for sale,” don’t just buy considering the low price. Keep in mind the amount of tax that is ready to knock on your door.
Available Public Utilities
No one wants to build a house or property where they don’t have access to clean water, market, or public transportation. So, before buying any vacant land first, you have to make sure that all necessary public utilities like water, sewer, electric, and gas are available. If the property does not have access to any of these, then it may not be suitable for building a home or any other structure over it.
There are alternatives to solve these issues like propane tanks, well water, solar energy, and septic systems – if the owner is willing to pay. However, you should know about all these obstacles before you buy to make your decision carefully. Don’t forget that these issues may affect the market value of the land.
These were the top three things you must follow when buying vacant land. If you are thinking of investing your money on vacant land that can earn you a good profit, the Vacant club can help you with this. Visit them now to know about different properties you can invest in.