Different land investments vary in size and price. Some more affluent land investors might have millions of dollars to invest in a new portfolio and some smaller investors start with only a quarter of an acre! Your first investment will mainly be determined by the capitol you have available.
Here is a list of 3 quick and essential things to consider when buying land:
1. Budget
Budget is the primary factor in figuring out how much land you would like to purchase. First you’ll need to figure out how much extra income you have to put towards the investment. The wonderful thing about vacant land is the variety of different land options for different types of investors as well as different price points.
2. Location
After determining your budget, location is key to figure out where you want to purchase your land. Depending on where you would like to make your investment, price per acre will fluctuate. Sometimes buying land in a rural area is significantly less than buying near a city center. If your reason for buying property is to develop it, privacy and lot size may be at the top of your priority list.
3. Improvements
The last thing to consider are land improvements. Making any improvement on the land may not be needed if you are purchasing land solely for investment purposes. The cost of clearing the land is something you will need to consider if you plan to develop it. If you have a small lot that isn’t heavily wooded, you can probably clear it yourself with some rented machinery in order to cut back on costs. Additionally, one of the most valuable resources on your lot could be the wood or vegetation on your land. For instance in Florida, palmetto berries are a great way to make a profit from your property. Palmetto bushes are native to Florida and widely known, but many people don’t realize that these berries are used to treat prostate problems, including cancer. Research labs will pay heavily for the cultivation of palmetto berries.