If you’re looking for a great real estate investment, purchasing land is an excellent choice. Land properties offer long-term appreciation value, require little to no maintenance, and have less competition compared to regular single-family homes and condos.
Buying land for investment? Check out this handy guide to make sure your endeavor is a success.
Figure out your investment goals
Before buying property, it’s best to think about what you want out of your land investment. Have clear and defined goals at the onset of your real estate journey. This will make it easier to find the ideal land to invest in and make the whole process as easy as possible.
To get a better grasp of your investment goals, ask yourself the following questions:
- Do you want to add value to the land?
- Are you planning on developing it?
- What structures do you want to build?
- How long do you plan to invest?
- Do you prefer a more passive investment?
Sit down with a real estate agent to discuss your plans. A real estate professional can help you find your ideal property and provide great advice.
Learn the zoning laws applicable to the property
Every area has its own zoning rules and regulations. When looking at properties, check with the local planning and zoning department. Find out if the property is classified as residential, mix-use, agricultural, industrial, or commercial.
Also, inquire about the types of properties under specific zones. This will give you a more concrete idea of what you can do with the land. You don’t want to invest in a parcel of land only to find out that you can’t build what you want on it later on.
Learn about the property’s history
When buying land, it’s essential to conduct a title search and a land survey. This will confirm the boundaries of the property, as well as identify any issues with the land.
Check the ownership history of the property to see if there are active disputes on the table. Also, make sure all previous disputes have been settled. Looking up the history of ownership could also provide insight into the property itself. If the land is quick to change hands, consider this as a red flag and study your options whether proceed with the purchase or not.
Ways to invest in land properties
Like other real estate investments, you can invest in land via a number of ways such as:
- Developing – Involves installing utilities and making it accessible. It’s a labor extensive process but often has profitable results.
- Flipping – Buying land and improving it by building structures. Investors can divide their property into parcels and work with different buyers to maximize profit.
- Leasing – Renting out part of their property is a great way to earn passive income.
- Holding – If you want to keep your involvement to a minimum, holding your land property and waiting for it to appreciate in value is also an option.
Discover your investment options and explore Wenatchee, WA real estate. Get in touch with us at Coldwell Banker Cascade Real Estate by calling 509.888.8887 or sending an email to info(at)cbcascade(dotted)com.