Residential Land Investment

[Sincerem]

Land is also a valuable asset because a lot of people that are interested to build houses will always want to build it on their own.
Residential property seems to be more expensive too. That's the reason people invest in Lands which is cheaper.

 

[Emmy]

I have a friend of mine who is into this land investment business and he's doing well. It's very obvious to me that there is a huge profit on it since land appreciate all the time. Moreso, many people are more interested in acquiring land as time passes.

 

[linux.poet]

I didn’t, but my parents did - at least to get a house for us to live in. Here’s some pro tips:

1. Check the access of your land. Do you have easements to get to it?
2. What easements are on your land? Are neighbors encroaching on it with their fences?

I suggest consulting your city government and your local law library for more information. Get a surveyor and a lawyer. You don’t want to become embroiled in a legal conflict over access or your neighbors suing you.

3. Are there any road maintenance agreements or private roads that you have to pay for as a cost of ownership?
4. What about HOA fees? Property taxes?
5. Are there any development requirements for your land imposed by the state or local government? This is important to know because you could be required to build a house or apartment, townhouse, etc on the land, and if you can’t resell to get out of that you could end up being stuck with that bill.
6. Is the property level or is there hills and slopes? That affects what can eventually be built on the land. What is the soil type? How much soil erosion could happen?
7. Does the land have access to city water, sewer, and electricity? Does it have a well or septic system installed? Does the ground percolate (this affects whether septic can be installed)?
8. Is the land in a high-fire area? That’s more landscaping costs that you are legally required to do.

So land investment is no panacea. You need to do your homework and weigh the land appreciation against the cost of ownership.