With the beginning of 2019 comes the perfect chance to change your life and start investing towards the future.
You may have heard that purchasing land is one of safest ways to invest…and you heard right! The trick is to know what and how to purchase. There are several factors to consider when buying land to ensure you will be able to earn a profit when you resell the land.
At Santa Cruz Properties, we have more than a decade of experience in buying and selling land, and we want to help you start 2019 in an amazing fashion. Consider the following 7 tips to effectively guide you through your purchasing process.
6 Tips to Consider When Buying Land in 2019
1. Buy at the right place and time.
To successfully invest in land, the best move is to purchase where there will soon be a high demand for vacant land within a few years – ideally – urban growth centers.
You might have noticed new businesses and shopping centers popping up in semi-rural areas throughout the Rio Grande Valley. This is a telltale sign that meaningful growth is starting to take place in the area. Buying vacant land some miles from these areas is a great bet as home builders and corporations will be looking for more land to develop.
Another factor to consider is the market. It is important to study it and see where the land market is currently positioned. If you buy on the low and wait to sell during high demand times, you are bound to make a good amount of profit.
2. Figure Out What the Land Was Previously Used For
In some cases, the way the land was being used by previous owners can affect its price. In some – very rare – instances, the land could have some sort of environmental issue, making it undesirable for most buyers.
You need to be aware of this to ensure you can resell at a profit instead of a loss.
Luckily, at Santa Cruz Properties, we do the hard work when it comes to researching land use. We promise you’ll love the owner-financed property you purchase from us and won’t have to worry about any of these types of issues.
3. Due diligence is required.
It is important to prepare for certain pitfalls when purchasing vacant property. Always do a title search and purchase title insurance to protect yourself from any financial loss caused by a defect in the property’s title.
You might also want to look over for any restrictions on the land like environmental restrictions or planned zoning changes. If you wish to build, make sure it is buildable land and qualifies for permits.
4. Get the right entitlements.
Getting land ready for development can include a lot of paperwork like getting the property rezoned, cleared, subdivided and/or getting the necessary permits, also called entitlements.
Entitling can greatly appreciate the property. On the other hand getting the wrong entitlements, like agreeing to specific obligations with neighboring property owners, can depreciate your land, setting you and your finances back.
5. Be aware of hidden costs.
Buying and developing land can be expensive. You need to consider paperwork fees, insurances, utilities, taxes and the cost of fixing the land and building on it.
Make sure you have the money and resources to make everything as cost-effective as possible. Plan and budget to make sure you will get back the profit you want.
6. Don’t expect to get a loan.
Banks and lenders are always reluctant to give out loans for vacant land. If you wish to simply purchase the land and let it appreciate, it might be worth looking into owner-financed land for sale close to you.
Let the realty specialists at Santa Cruz Properties help you find the perfect vacant lot to meet your needs.
With owner-financing available, and prime property located all throughout the Hidalgo and Starr County, Santa Cruz Properties has the land of your dreams. Contact us today at (956) 383-0868 and let us help you find the right vacant lot for you and your needs.