When investing in land, it is important to consider a number of factors. Vacant land can be one of the most overlooked real estate investments in the world and people often do not see the value of investing in it, however, it can produce serious amounts of cash flow. Vacant land is an extremely valuable resource, as there is an infinite amount of it! Investing in real estate would be considered a long term investment, as it can take years to see any profits from it. Many people see it as a “boring” investment- but sometimes boring is good! It is inexpensive to own land as a long term investment; there are no bills to pay, and no loans to pay off, so it can be a good place to hold cash for as long as you want/need. Below we have comprised a list of the top three places in America to invest in land.
California is a very attractive location for many people and has been growing in popularity in recent years. Thanks to the tech boom, more and more people are considering California as a migration destination. These factors have driven up prices of land in the state, and many predict that these prices will only continue to grow in years to come. For these reasons, investing in land in California, will likely give great returns in the future.
Arizona is a very affordable place to own land, as there is a lot of vacant land there. There are many opportunities to make profits from owning land in Arizona. Firstly, you can keep the land to enjoy for your own recreation in your spare time. Secondly, you can look into renting the land out to farmers or to recreation companies to make some nice profits! The easiest way to make a profit may be just from holding the land until the value increases again and selling it for a higher price. Simple things such as mowing and clearing the land can really add value to the plot.
The demand for land in Utah is quite low, so this means that it is possible to get a great plot of land for a very attractive price. It also makes the buying process a lot more pleasant, as it eliminates high bidding competition, resulting in a lower price! (A real win-win situation). Banks are usually quite reluctant to give loans for vacant land, the reason for this being that if the borrower defaults, it will be harder for the bank to re-sell vacant land than it would be to re-sell property. However, this can be an advantage for land owners, as you can sell it on an owner-finance basis and cna then charge higher interest rates, resulting in a nice profit for yourself!
If you have any questions or queries about purchasing real estate in the Northern California area, please do not hesitate to get in contact with us here at Martinez Ranch Management and Real Estate.