Whether you are building your dream home, buying for investment or even starting that flamingo farm, there is no question that land is an extremely valuable asset. But there are some things to keep in mind before you start shopping for your next piece of dirt!

Land is an illiquid investment, meaning that you cannot turn it into cash quickly through an active public market like stocks and bonds can. Rather, you have to wait for the right buyer, or build a long-term hold strategy, in order to sell at a profit.

However, this doesn’t mean that it’s not worth your while to buy land for the long-term. Because it’s a non-depreciating asset, unlike a car or a house, the value of land will always be at least equal to what you paid for it. This makes it a safe and secure option that can yield a healthy ROI over time.

As population continues to grow, demand for land will also increase. This can lead to significant price appreciation for raw land, even faster than fully-developed properties. In addition, because there’s limited supply, land tends to hold its value better than other types of real estate.

Another reason to buy we love buying land is that it offers you freedom to be creative with the property. You can build a custom home, turn it into a private shooting range, create your own dirt bike track or whatever else you can imagine. However, you will want to make sure that the county allows this before you purchase the land because it could be against zoning regulations or even environmental laws.

Land can be more affordable than homes because the cost of development is typically higher for homes. Additionally, a lot of people prefer the quieter lifestyle that comes with owning land. Depending on the location of the land you are purchasing, you may also have access to amenities such as parks and trails for hiking and biking.

Unlike a home, land doesn’t require a ton of maintenance or repairs, especially if it is unused. However, it’s still important to keep in mind that if you do decide to use your land for something other than a residence, you will have to invest more money into the site.

Ready to get started searching for your perfect parcel of land. Find a RamseyTrusted real estate agent in your area and let them walk you through the process! These agents are local experts, and they’ll help you navigate the ins and outs of buying land, from finding financing options to ensuring that your potential property has the correct zoning for the purpose you have in mind. Let them know that you saw this article on why we love buying land. They’ll be happy to help!