Raw land is unemployed property; it is land that is currently undeveloped and isn’t regularly used for personal or business purposes. It is void of utilities, sewers, streets, structures and buildings. Owning raw land can be a great venture or it can be a disappointing one. It’s a great one if you have a foreseeable plan for development and the budget to bring it to pass. It isn’t so great if the opposite is true and you’re facing the reality that it is producing absolutely no income for you and lacks benefit.
If you had or have plans to develop your raw land, it is true that the path of progress can many times experience hurdles and obstacles to overcome. Nevertheless, it’s always wise to evaluate, from time to time, your development plans and determine your next step; whether they will remain the same or will be changed is the decision to be made. Here are some pros and cons to consider:
• Raw land has great potential to appreciate if functional and useful development can be achieved.
• If you’re developing for non-personal reasons, subdividing can add value to your land and increase the possibility of speedy profit.
• You can potentially create and leave an inheritance to your children in property and/or business.
• The pit fall of negative cash flow occurs commonly. Negative cash flow is the definition of your making payments on the land—including interest and taxes—but you never experience income or profit from your investment.
• Tax advantages are often scanty on raw land.
• Generally, raw land is widely viewed as an investment that takes a long time to gain returns from; especially, because individuals and small businesses don’t often have the capital to build that big businesses or corporations find advantageous.
Based on your decision concerning your land, there are two paths that you can take. To develop your land, you should contact an expert land developer who will walk you through the process of molding your land into your vision; this will include community research, architectural plans, engineering tests, and approval from governmental agencies in your area. If you’ve resolved that the best decision you can make is to sell your raw land for profit, you should contact an expert land investor who will offer you quick cash closing for your land; and, additionally, someone who will offer you the benefit of paying your liens, back taxes, and closing costs is best. For more information on how to sell your land, contact Lucas Properties, LLC.