What to Look for When Buying Land

For real estate investors who don’t want to worry about managing rental properties or keeping tenants happy, buying land can be a very attractive option. There’s something intrinsically satisfying about owning your own parcel of land. Whether you’re looking for a low maintenance real estate investment or a blank canvas for your own unique property creation, buying a plot of undeveloped land certainly has its benefits. Here are some things to look for when you purchase undeveloped land.

Be Patient When Buying Land

If you want to find a decent investment opportunity in undeveloped land, don’t rush into anything. It’s imperative that you perform due diligence. Unlike buying a property in a new housing development, there is a wide range of issues and concerns that you need to examine before you decide to purchase a particular parcel of land. There’s just more legwork when you purchase undeveloped land. You need to check on easement issues, utilities, mineral rights and a wide range of other restrictions. These issues just don’t pop up when you’re purchasing a property that has already been developed. When you realize just how much research is required, you won’t make any impulsive land purchases.

Understand How Zoning Laws Will Affect Your Land

When you purchase land, you had better have a thorough understanding of how local zoning laws will impact any future development and construction efforts on your property. Find out what you can build on your parcel. Go into the local zoning and planning department and investigate the area. Is the area surrounding your property zoned for public use, residential, commercial or agricultural development? Are their plans in the works for building a major highway in the area? Make sure you ask many questions when you’re in the zoning and planning department. Find out how building codes will affect your plans. You don’t want to purchase land only to find out later that you’re not permitted to develop your plot as you envisioned.

Look into the Community’s Conservation Concerns

If there are environmental restrictions on your property, you need to know this ahead of time. Are their conservation activists in the area who are concerned about protecting local wildlife? If you plan to develop a parcel of land that is a protected natural habitat, you will be in for a big surprise. Avoid these surprises. Gather as much info as possible on all the restrictions that apply to your parcel of undeveloped land.

When you purchase land, try to anticipate a demand for new housing. If there is an up-and-coming market that has a high demand for property and limited housing opportunities, investing in land can be a very smart strategy. Although there will certainly be some maintenance costs, managing a vacant lot is a lot simpler than managing tenants. If you find the right stretch of land in an emerging market, you could make a nice return on your investment by selling to buyers looking to build a home in the area.