Studying Area Growth and Development
In a previous post we discussed purchasing vacant land as an alternative investment. For those who choose to keep vacant land as a means of investing, buying land in growing areas can be just as important as the property itself.
Studying the direction of growth of a city or town highlights areas that have become populated over a specific timeframe and where this activity has been focused. This information is beneficial to landowners and potential land investors for a multitude of reasons.
Future Interest in Area
Successful long-term land investors are picky when it comes to where they purchase vacant land. They study area growth and development closely. The more developed an area becomes, the more profitable and desirable their property will be. Highly developed areas attract more interest, whether it is for developing businesses residential neighborhoods.
Eventually, businesses and neighborhoods will expand throughout the majority of the town center and vacant land will be scarce. Due to its popular location and scarcity, land that remains vacant throughout the growth of an area will become more valuable than it was in previous years. This increases potential profit if and when a long-term investor sells.
Buying Land In Growing Areas For Agriculture
Some long-term land investors choose to focus on area’s agricultural potential. Although rural areas tend to be less desirable investments there is still great value there.
Often, landowners will rent out their vacant land to neighboring farmers and ranchers. Because the area is less populated than a metropolis or an up-and-coming town, the property can be used to cultivate farmland. An added bonus is that vacant properties in rural areas tend to be divided into larger parcels and are more affordable than property located within a city’s limits.
Buying land in growing areas does not need to be costly. As long as you study the areas where you’re interested, you can find land that is affordable now and will be substantially profitable in the future. Intelligent investors benefit from knowing the growth trends and development patterns near their vacant land.