| Though most people purchase undeveloped land | | | | buying vacant land there is no proof that a house |
| with the intention of building their dream home, | | | | ever could be built on it. It's up to you to do your |
| there are other motivations for buying vacant | | | | due diligence in determining whether the land will |
| land. This land is also a wise investment for | | | | meet your needs. Before investing in vacant land, |
| developers, subdividers, or land speculators. | | | | find out four key features of the land. First, how |
| Investing in land does require some research, or | | | | is the lay of the land? Avoid properties in flood |
| you could end up paying way too much for land | | | | zones or with sharp hills, rough terrain, or other |
| that is essentially worthless. Despite the current | | | | undesirable features that may make developing |
| state of the real estate market, many | | | | the land difficult. Also, avoid oddly-shaped lots in |
| undeveloped properties are currently undervalued, | | | | favor of rectangular or square ones, which will be |
| especially when you consider easy methods to | | | | easier to sell. Second, how accessible is it? Are |
| make a fast profit, such as subdividing a larger | | | | there roads, and are they well maintained? Are |
| property. | | | | they paved? Third, is there a source for utilities, |
| If you've found a plot of vacant land you think | | | | including water, electricity, and wastewater? |
| you want to purchase, where do you start? Don't | | | | Without these essential features, you'll be hard |
| just purchase the land based on what you think it | | | | pressed to find a buyer who wants to build there. |
| is. It is essential to actually visit the land and walk | | | | Finally, how is the location of the property. Will it |
| around to see what it's like. Don't just rely on a | | | | make a good residential location? Do current |
| map, or worse yet, the seller's description. For | | | | projections show the area to be growing? Is it an |
| example, you may find that there are no roads | | | | up-and-coming area where real estate is likely to |
| to access your land. Clearly, this will hurt its | | | | appreciate in the coming years? |
| investment potential. There are many features of | | | | Before buying vacant land as an investment, |
| the land that simply may not be disclosed on a | | | | know what you're going to do with it. You could |
| simple map or the seller's description of the land, | | | | build a home or another structure, and then sell |
| but are readily apparent upon setting foot on the | | | | the property as developed land. You could have |
| property. | | | | the land re-surveyed and subdivided into several |
| Before buying any land, whether vacant or | | | | smaller properties, which can then be sold to |
| developed, you must have a land surveyor | | | | individual buyers. Finally, you can hold on to the |
| conduct a survey of it. Depending on the type of | | | | land as an investment for a few years until its |
| survey deemed appropriate for your situation, the | | | | value has increased. If you have a specific plan in |
| survey can include boundaries, slope and layout, | | | | mind, check zoning regulations and other rules to |
| natural features, roads and utilities, and other | | | | be sure that your plan is possible on the site you |
| features that will affect the value of the land. | | | | have selected. For example, you may be unable |
| In some ways, buying undeveloped land is an | | | | to subdivide the land you have purchased, or |
| entirely different process than buying a property | | | | zoning regulations may prohibit the type of building |
| with a house already on it. Remember, when | | | | you have in mind for the property. |