This is a simple question that has a lengthy answer. The short answer is that land is only worth what you can do with it. Therefore, finding out what the local zoning laws are is the first thing you want to do when looking at acreage to buy for investment.
For example, you may be considering buying a parcel of land for a subdivision. While land subdivision is probably the easiest way to begin in real estate development, you still need to do your market research. Keep in mind that each potential buyer for a piece of this cake you’re making needs to feel they are getting a good value.
This is where knowing what the zoning regulations are before buying any acreage is a must. You should know the size of housing blocks that are popular and what is selling in the market sector you’re considering.
Some zones will allow you to build houses and other zones allow condos. Then there are the ones that are for commercial use such as shopping strips or offices. Or the land you are looking at may be zoned industrial. Do you homework before you buy and know what you can do with it.
However, the current land use may be changing in the area that you are looking at purchasing. Perhaps it's on the city border and is zoned farming or rural. Or, due to demand of the population growing, a residential development could be moving in the direction of this land. If that were the case, you can apply to the zoning authority and request a rezoning of the land. Remember though, that to change from land that is deemed farm use to residential use will take time and money.
So before you buy acreage for an investment, your first job will have many different steps to it. The first step is to find out what the zoning restrictions are for the land you’re considering buying. The next step you should take is to find out the opposition's plan is in this area. You want to come up with plans that will make your design more unique.
If subdivision development is the way you want to invest, it can be a profitable investment to undertake. There is a right way to do this and have a pleasurable experience while making money too, if it is carried out with a system behind it.