Use it for a Retirement Investment?

If you purchase the right parcel, it will continue to appreciate. Raw land investments don’t fluctuate as much as your stock portfolio either. Rent it as farmland. That is if you do it right and avoid the pitfalls. Then there’s the earning potential. Read on to learn some tips for developing your raw land. You can convert it into a recreational facility. Build housing or a hotel. If you develop your raw land, it can increase in value in a short time.

Can you build on raw land? Jaben, Jan. “Environmental audits and expertise have become industry necessities.” National Real Estate Investor. Invest in Real Estate. Century 21 All Aces Realty. Seruga, Tony; Seruga, Yoanda; Bishop, Yolanda. What is Superfund Redevelopment? Lurz, Bill. “Don’t give up on developing land.” Giants. You can generally do whatever you want with your raw land as long as it falls within zoning and environmental laws. Building will require plans and permits, so consider meeting with a real estate attorney before moving forward. Grella, Craig. “Residential Land Development – Part 1.” The Bigger Pockets.

Negative cash flow can be a problem. Others plunge in head first, spending more than they can possibly get in the resale. They often generate little income and the cost of development can be high. Investors sometimes find that they owe more for the land than they are able to generate as income. Banks consider raw land purchases to be speculative investments. If is often better to see if you can get financing through the property seller. Typically they will accept a lower down payment and provide financing at a lower interest rate.

If there isn’t a power plant within a reasonable distance, you will have to pay the cost of running cables across public lands to get hooked up. Other important services include police and fire protection, hospitals, schools, churches and mail delivery. Be sure to call the utilities and find out before you buy. You’ll also want to know if there is sewage disposal or if a septic tank is required, and whether there is trash pick-up or must other arrangements be made. Depending on your financial resources, this could be a deal breaker.