When some people think about buying land, they just think of a big, empty area. But land investing is way more detailed than that, which is good news because it gives you, even more, exit strategies. When you’re thinking about investing in land, here are 4 types of popular land investments and how to evaluate them.
4 Types Of Popular Land Investments And How To Evaluate Them
These small properties exist in town and are often an undeveloped piece of land in the middle of a suburban area, such as the 33618 or other areas. When looking at these properties, consider how easy it is to build and whether the area is in a desirable location. Infills can be a fast, simple way to make money on building if you can build affordable and sell quickly.
#2. Subdivision Development
These tracts of land can be quite large and hold the promise of building a subdivision of houses. When evaluating this land, make sure that city services can be affordably extended to the area, and city bylaws allow you to subdivide the land. Some large subdivision developments around the country have stalled because city services couldn’t affordably be extended to the land.
#3. Commercial Development
Raw land can be turned into a warehouse, factory, storage facility, shopping space – even a restaurant, mechanic shop, or doctor’s office. When evaluating the potential of commercial development land, consider whether your preferred development will work on that land. For example, if you plan to build a shopping mall, is there road access and shoppers who live nearby?
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… but use the land for your enjoyment. This is a legitimate and very common reason to invest. When evaluating this type of land, ask yourself whether you’ll be allowed to build a cabin or hunt and fish on this land and whether it’s safe to allow others to do so too.
These aren’t the only ways to invest in land but these are 4 types of popular land investments and how to evaluate them so you can build a portfolio of profitable land investments. Start here and grow from here!
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