The Land you own should become the goal you want for it to become a reality…
In order to benefit with any Land purchase, you need to have a vision and goal for what you’ll do with the land.
Three simple questions to ask yourself are:
1.) What is your purpose for buying it?
2.) What will you do with the land?
3.) What do you expect to achieve through owning it?
If you buy land with no plans, other than having hope to one day build on it, that’s fine as long as you are making plans for that day and creating a reserve fund for when it will take place. Set aside funds to grow towards that dream date. Set the date. Stick to it. Just as having any goal means to plan ahead and take steps to make it happen.
But if you do nothing other than simply hope, well, it could still pan out to be a blessing when you go to sell it, and it’s definitely better than letting your money just sit in a bank where there’s not much interest worth speaking of. After all, more people would rather buy your land rather than put their money in a bank where it doesn’t do much good for their future. Land has value and it has uses that anyone can benefit from.
Money can be lost or stolen, but no one can steal your land. The only way you could possibly lose the land is if you take a loan out to purchase it but fail to fulfill your obligation to pay what is owed. Although it’s often hard to find a lender or bank to loan on Land, but many investors do, and most investors take necessary precautions to avoid having to take back a property where Seller Financing was offered when they still legally own the land. So, it’s required that the buyer live up to their end of the deal in order to receive the land as agreed upon in writing, once the land is paid in full.
So, what are some reasons people buy land, but it just sits unused?
They may buy at today’s prices rather than wait till later and pay more for what they would like to leave as a legacy for future wealth that a bank cannot provide for their children, grandchildren, or other heirs. Often Land will return greater wealth than whatever a bank can offer with a savings account. Have you ever asked yourself why are so many banks closing their local branches and asking their customers to go online instead? It’s so the banks do not have to pay extra for employees, utilities, leases, etc., and they’re surely not giving much of anything to speak of to their customers either, so they’re trying to find a way to keep more by making online banking seem as if it’s a much better way to do business, rather than receive personalized customer service. Oops, I just got side-tracked on that subject.
The #1 reason people buy land, is that they plan to build a home on it and like what all the area offers.
They may want a place to live away from the crowds, or near a job site.
It may be a short-term investment where they plan to resell in a few years, or months, in order to step up to the next level of investing, and then repeat the process in order to gain momentum in building future wealth more quickly. If this is your goal, please consult with your CPA before jumping into this realm so you’ll understand better what is required when it comes time to file your tax returns, and so you’ll have a better advantage when you know what to expect in this endeavor.
On the other hand, buying land may be a long-term investment (over 2 years), where it’s believed to have future plans for development within the area. Reselling the land years later can sometimes be a better benefit because you waited. Depending on the situation and time spent, along with any holding costs. If the land owner is able to start building once the area becomes what they hoped for then it’s much easier to get a construction loan because they have the land. Last time I checked, every house was built on Land. So, get the land first, then build when you’re able. 😉 Of course, other factors will affect your ability to make your dreams come true, such as employment, health, the economy, family, etc.. Utilities, Building Materials, and other resources are also a necessary part of what is needed to make the goal/dream a reality.
So, the questions to ask yourself is:
1.) Can you see yourself living there?
2.) Do you want a place that is somewhere you can build now, or later?
3.) Is it in an area where you see growth, or a place where you can explore adventures nearby, or where you can enjoy local entertainment? Does the area allow a few recreational activities, such as boating, fishing, hunting, archery, ATV (all terrain vehicle) off roading experiences, hiking, sight-seeing, etc.?
4.) Is it an Off-Grid property you’re wanting to establish, utilizing and experimenting with Alternative Utility sources? This 1st link covers it all https://nogridsurvivalprojects.com/book/, but here are a few other possible solutions to consider too if not going with the standard systems we all grew up knowing about…https://www.diy-solar-heater.com
And, of course, there’s always water haul service to fill your cistern, or hire someone to drill a
well for you if the size of your lot accommodates this option.
5.) Is the land within a metropolitan area that provides everything needed quickly within a few minutes, or do you prefer to be in a suburban area where you can still get to all conveniences within a half hour or so?
6.) Are there any building restrictions that state when you must build by or otherwise? Or are there no building restrictions which allows you more time to consider when you’ll be able to build?
7.) Does the type of home you’re wanting to live in, fit into the area where you will someday build? What is the zoning there? Does it allow for Manufactured homes? Tiny Homes or RV’s or Container Homes? Is there a HOA (Home Owner’s Association) or POA (Property Owner’s Association) which has guidelines on keeping the community in good shape for everyone in it? These are things you can often find out by simply calling the county where the property is located in order to ask these questions.
8.) Are you wanting land where some day you can have horses, goats, and/or other cattle? Maybe you’d like to buy the adjoining neighboring lots to have more space in order to create your own ranch, or ranchette. Sometimes, neighboring lot owners that are not using their land, or able to build on it are often open to selling the land if things changed for them. Plus, you can usually buy their lot at less than market value if not listed with a Realtor. This way, lot by lot, you can enlarge your territory where you want to own and grow. That’s not to say every neighbor will be so willing, but it never hurts to ask. Just be sure to let them know that when they are ready to sell that they’ll have a built-in buyer next door.
9.) Do you want to buy the land so that you can build more than 1 home on it, in order to rent out one and live in the other? Maybe you’d like a place where family and friends can visit in a guest house or casita. Maybe you want to use one of those as an AirBnB, or lease out a unit. Maybe even place another home on the same lot to help pay for your own. If it’s zoned for Multifamily homes, then a duplex, triplex, four-plex or maybe even more can be built to help grow your portfolio of rental units, depending on the size of the lot and county allowances.
10.) Perhaps you’re wanting a 2nd home location where you can leave to avoid harsh winters, or to avoid the summer heat if that is where your primary home is. How nice it is to have a 2nd home where you can venture off to, to enjoy a place opposite of the temperatures you want to get away from without the high costs of hotel stays and other travel expenses, and without having to sell your home to do so.
Lastly, some people just want a place to retire to, and that time has not yet come. So make sure if this is you, that you store up for the future you want to come.
Nevertheless, if you don’t have a plan up front then it’s kind of like waiting for your ship to come in at the airport. In other words, it’s up to you to make your goal happen.
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