4 Tips for Cheap Land

Could you transform a plot of cheap land into a worthwhile investment? It depends.

Cheap land is still out there these days. The economic recession that began in 2007 made land and houses more affordable, and some markets haven’t yet fully recovered. If you happen to find a deal, it’s important to know whether the property could present a good value or if it’s just cheap.

How to Assess Whether Cheap Land Is a Good Investment

Determine the Intended Use

Cheap land that is purchased with the intent of farming needs to have good soil quality. Without it, the farm will be a bust. Similarly, an office building needs access to major transportation routes for staff commuting.

Some uses for cheap land that may be worth your while:

• Flip the Land: The key to flipping land is to buy cheap land that’s not zoned for development, and then get it rezoned yourself. Just changing the zoning can have a massive impact on the land’s value. For example, agricultural land could be re-zoned into pricier commercial or residentially zoned land.
• Develop it Yourself: Add to the value of raw land by building on it and then selling. The further away from a major metropolis, the smaller the initial capital investment and the longer the timeline for growth. The key is finding property that’s undervalued because it’s underdeveloped. Read more: How Developing Vacant Land Can Be Daunting & Rewarding.
  
• Buy an Infill Property: Buy a larger piece of land that currently has a single building and then divide the land into multiple plots and build on each. This type of investment is common in cities where the infrastructure and amenities are already in place.

Thoroughly Investigate the Property

Large acreage tracts can require a full year to properly assess. Even smaller lots are likely to take more time than you think expect. Identify the property’s boundaries and unique features at this stage.

Research Potential Usage Restrictions

Are there any limitations on how you may use the property? Learn about:

• Zoning
• Any restricted uses
• Power availability
• Water availability

o   If there are utilities that are not available, the cost to access them may be prohibitive

Close the Sale

Once you’ve identified a potential cheap land opportunity, you’ll need to assess what the land is worth now, and what it could be worth in the future. Consider the current value, the annual property taxes and the future intent or use of each parcel.

For a smooth purchase process, plan for the following:

• Plan to pay cash
• Review the title carefully – in advance – to ensure there are no encroachments or legal encumbrances that could limit the land’s potential future use.
• Work with a lawyer who specializes in real estate law to protect you from other hidden risks.
  
  

The benefits of developing cheap land for investment purposes are simple and straightforward: the cost to purchase raw land is significantly lower than purchasing property.

More than just farm country, Currituck County, NC is an ideal site to establish or expand your business. The region’s proximity to the Hampton Roads region and Port of Virginia facilitates ease of product development and distribution to locations worldwide. Additional transport options include major rail and highways, the Atlantic Intracoastal Waterway system and the Currituck County Regional Airport, the only Outer Banks airport serving regional jet aircraft, neighboring Norfolk International Airport.

Learn about cheap land opportunities in Currituck County, and other benefits of locating your home or business here, by downloading our free guide 5 Reasons You Should Be Thinking Currituck.