Here Are Good Reasons to Sell That Plot of Land

Inheritance is the number one way that people come to own land, and if you are non-experienced in land investment, why hold on to it? Many people inherit land all the time. Then their land is probably sitting around and is of no use to those who inherited it. So selling it can at least make you a nice chunk of change!
Or maybe you purchased a few extra acres when you bought your lot thinking it was a great deal at the time. Your house is built and you’re all settled in, expanded as much as you need or want to. So now you don't have any use for the extra acreage. So what can you do with it? Sell it! I mean after all, if you aren’t going to use the land itself, you can probably use the extra cash, right? If you don't have any plans or the money to develop it, then sell it to somebody who can put it to good use. You can make some money off of something that you own and have no idea what to do with it. Somewhere, there is somebody probably looking for vacant land at a good deal!
Perhaps back a few years when the economy was better, you purchased a parcel of land with the intentions to flip it. You thought it was a good investment. So now it is just sitting around costing you tax money not to mention the headache of upkeep too. So why not sell it? Don’t be one of these that hang on to land for too long. Most people think that selling land is hard to do because they think most buyers of land want structures already on it. So if you don’t have the money or the know how to develop this land, you may stand to reap a nice profit.
Regardless of how you came to own the land, selling it isn't always an easy decision. Even if you know that it is probably the best decision, you need to make sure you have a good case to persuade yourself. Land investment is not for everyone. So if you have other ideas for investment but don’t have the cash flow necessary to make them happen, selling your land may be a worthy trade-off.
Not only by selling it can you get some cash, but you will get a monkey off of your back too! To then you can take the funds gained from the sell and direct your efforts elsewhere. Maybe you want to buy your first house or maybe you have a child about to go to college. Or you and your spouse are about to retire and want to buy a boat and sail around the world! For whatever your reason, selling your land can give you a boost in that direction.

What Good Is Raw Land?

When you own raw land, you have the opportunity for many benefits. If you don’t want or need to build on it, you can rent it out. Or, depending on the location, use it for personal recreation even. With that being said, where you buy the land and what you want to do with it are two things that need to work together.

Rural land is the easiest to buy. Buying a city parcel is much more complicated. However, there are still precautions you need to take and research to be done. The zoning should be your first concern. If you want to purchase land for residential you need to know what building restrictions are in place.

Rural land has more opportunities for an investor. Buy the land and wait for it to appreciate is a common move. When an investor knows of a development being planned in the area, he will be able to cash in by reselling when that development happens. Or build his own development to compliment and feed off the success of the first development, such as with recreational purpose.

If you are looking for land to raise cattle, you want to make sure you are getting a good quality of land. Land that is flat, drains well with good soil is important. Land being purchased for equestrian use should have gentle slopes, lots of woods as well as flat ground. Land with intents of ranching you will need many conveniences close by such as water, power and road access. You will need to be sure you can gain access even in heavy rains..

If flooding is a concern, getting an agricultural report would be worth your time and money before you sign any documents. Land that floods and holds water is not suitable for horses, cattle and most crops. A visit to the local agricultural office can be worth a lot of knowledge.

Keep in mind there are legalities you need to consider too. Such as if there is a passage through another person’s land to gain access to your property. Find out what easement issues there may be, you don’t need any surprises by local law enforcement after you have made your purchase!

Land is one investment that will always hold its value. It has a history of appreciating all the time. With an investment in land, you won’t have the worries and concerns that you will with stocks and other type of investments. Land is dependable and they aren’t making any more of it!

Buying Raw Land Is a Great Investment

First, let us make sure we understand what raw land is exactly. Any property that is unimproved has no utilities; sewer, streets or any structure on it is considered raw land. It may be wooded and have underbrush, but nothing placed on it by man, it is still in its natural form.

While raw land can be a great investment, getting it financed can be more difficult than getting improved land financed. Raw land does not generate immediate income. The expense of getting the land up to standards so that it will generate income can be astounding. The potential income of raw land is completely speculation.

So you need to ask yourself, is your reason to buy this raw land? What are you looking for in return? If you know exactly what your goal is in purchasing this property, and you know that it will in fact serve that purpose, you can then move forward in getting financing. When you have a defined purpose and a plan of action, getting raw land financed will be easier.

There is so much to know about buying raw land than one may realize at first. The chances of getting duped, conned or misled are highly possible. Being ill-advised and uniformed it may be too late before you realize it. Doing your homework by investigating the land and evaluating the situation is always recommended.

Depending on what your plans are for the land, there are many factors to consider. Are you planning to build your home on the land? Is this home for the present or your future retirement? Perhaps you plan to develop it for resale, such as a housing development or retail purpose.

Keeping your goal and purpose in mind, some key factors to know are as follows:

Clean air: What are the regulations and stipulations of the area for industrial use if you are looking a commercial development? Or if a residential plan is the goal, what is the surrounding area like?

Water: A daily necessity for either commercial or residential use. If a residential use is planned, does the water meet government standards for drinking?

Sewage and waste disposal: Knowing if the property you are looking at is on city water and sewer or if a septic system is required will be key information needed in getting financing. Regardless for residential or commercial purpose, the need for garbage collection will be necessary.

Electricity: A daily need regardless if a property is commercial or residential. Is there electricity to the property? How far will you need the electrical line ran to have power? What licenses and requirements are needed to run electricity to the land? Not only will there be the cost running the power to property, but there most likely will be fees as well.

Answers to these questions can be answered by local officials. Start your homework and research by inquiring with the planning and zoning offices. Phone calls or visits to the utility offices will answer many questions that you will have after knowing the zoning requirements.

A raw land investment can be a good investment if you do your homework. Have a clear goal set and a plan of action before going forward in finding funding. Once you have all this in place, you can sit back and enjoy the profits from your investment. Or take those profits and start your next investment!

Why Buy Land As An Investment?

Not all of us with money to invest should do so with land investments. There are risks in this type of investing and not everyone is cut out for that kind of headache and worry it can bring. The investor that purchases land will reap spectacular rewards. Sometimes you need to have patience for those rewards to come. The one fact about investing in land that is for sure, they aren’t making any more!

So maybe you have some money set aside for retirement and your 401k isn’t performing like you had hoped. Retirement is getting closer and you aren’t comfortable with what you have put away to live off. The thought of investing some of this money is enticing to you, but you just aren’t sure how to go about it. We are going to offer some insights here that we hope will give you a direction.

Sometimes land purchases consist of a team of the investor and a developer. Some investors will make their money by keeping the property by holding it while it goes through phases. The developer is the one guiding the phases and the more phases, the more money the investor can make. The downside to this is there is no set time frame for long it will take to go through those phases. It could be a fast process with quick return or depending on the market.

For example, the value will increase on the anticipation of a building or a highway planned for an area. However, if these plans drop off, then the anticipated appreciation is delayed or may even become nonexistent. When the market slows, land values take longer to appreciate. Such as the announcement for the plans to build an airport is announced. Immediately, the value of land in that area skyrockets! Then when the plans fall through, could be financing issues or zoning issues, that value will drop.

Another approach by investors is to put the land to use while waiting for the appreciation to grow. Using the land to generate residual income till the time is right to flip it for a tidy profit. You can lease the land to a garden center that uses it as a nursery when they store plants and trees. Driving ranges are another way this land can be used. Any improvements made to the property should be fully depreciated over the holding period. In the meantime though, a cash flow is generated by the use of the property that will pay for the improvements and then some. Even if the area doesn’t take off as anticipated, you can continue using the land for business purposes while waiting for appreciation to increase.

While a land investment can be the best real estate investments, it also can be one of the hardest. Many investors are not able to invest in land because of the risks involved. However, those that do can look forward to significantly higher returns than other investments offer.