When some people think about buying land, they often just think of just vacant land with little to no value. But land investing can be way more interesting than that! If you know what you’re doing, you could have a number of different exit strategies. When you’re thinking about buying land, here are 4 types of popular land investments and how to evaluate them.
4 Types Of Popular Land Investments And The Ways To Evaluate Them
#1. Infill Lots
These small properties exist in town and are often undeveloped pieces of land in the middle of a suburban area. These lots generally tend to be anywhere from a quarter to a full acre of land and will often have houses nearby. When looking at these properties, consider how easy it is to build and if there are nearby utilities. Is the lot in a desirable location where people are moving to? Infills can be a fast and simple way to make money on building if you can build and sell quickly.
#2. Subdividing and Developing
Maybe you live or have lived in a subdivision before of houses. These came from larger pieces of land that were then divided into smaller pieces. When evaluating this kind of property, make sure that city services can be affordably extended to the area, and city bylaws allow you to subdivide the land. If you are able to purchase a large tract of land and subdivide it, you can make massive profits.
#3. Commercial Land Development
Raw land can be turned into a warehouse, factory, storage facility, or shopping space – even a restaurant, mechanic shop, or doctor’s office. When evaluating the potential of land for commercial development, consider whether your preferred development will work on that land. Usually the county will have the property zoned as commercial or will outline what is needed to change the zoning if needed.
#4. Recreational Land
Have you ever dreamed of hunting or camping on your own land? Not all land needs to be developed! You may choose to acquire land and instead of seeking out a financial ROI, you may want to invest in land and hold it… or just use the land for your enjoyment. This is a legitimate and very common reason to invest in land. When evaluating this type of land, ask yourself whether you’ll be allowed to build a cabin or hunt and fish on the land.
Summary
These aren’t the only ways to invest in land but these are 4 types of the most popular land investment strategies. We hope you have gotten a better idea of how to properly evaluate them. You can’t build your land empire without starting, so give us a call today!
Are you ready to acquire more land or maybe you just want to see what land investments are available to consider how you might invest? Get in touch with us to see our list of available land for sale. You can call us at (877) 463-9755 or click here now and fill out the form and we’ll get you access to our list of properties.