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Is There Such a Thing as Buying Too Much Land?

is there such a thing as buying too much land?

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Published date:

September 28, 2017

Last updated date:

May 26, 2024

By Cindy Trillo

Buying the right land for your business plans and financial goals, isn’t always an easy thing to do. You spend a lot of time selecting the right state, region, area and exact spot. Then, it has to be suitable for your plans and the authorities have to agree. Ideally, all of this happens before you even purchase the land you’ve painstakingly identified. However, in some cases, you could find the perfect location, but the land available is more than you think you need or want for your purposes. But hold on, is there really such a thing as buying too much land?

Not Really

Even if the business you're planning to create on the land you've purchased is niche and something that hasn't been done in the area before, that doesn't mean it won't succeed - and help increase the value of any excess land at the same time. Ideas on how to use raw land for business purposes include:

  • Create a local wildlife preservation site with trails for people to visit. The business aspect could be you charge a small fee for entry and parking to the well kept trails. Or you could build a great cafe people will travel to, for the cakes or other specific meals it specializes in.
  • Farm the land or cultivate and orchard. This gives the land more value as it's producing a commodity people want. If the land works well as an area to grow produce - you or some else - could invest in a farm shop or a trail to encourage visitors. And, where there are people, there's a business opportunity.
  • Turn it into an off-grid camping, or glamping (a style of camping with amenities) experience. Similar to the wildlife preservation idea, if you provide certain areas of your land for parking - with the right facilities - it could easily become a popular visit for camping enthusiasts. And, as before, where there are people there's an opportunity to sell more items, locally produced and different to what is available in the supermarket.
A Sound Investment

In many cases, though, even when you need a business loan to make the investment, buying more land than you need right at that moment, makes sense. Provided, of course, your repayments and business plan are financially achievable for you. That’s because, if you see some business value in the land, then chances are, others will too. It might require you to take the first risk of starting a business there. But, if your plan is a success, others are sure to be attracted to your site and people with an interest in investment and/or finding a first home for their own big idea to begin.

Always Think Your Investment Through with Care

Even though the above scenarios are highly likely, they’re never a certainty until contracts are signed and money has been exchanged. Always bear that in mind when you’re making any investment, particularly when you’re taking on additional debt to do so. Speak to a reputable and reliable real estate lawyer, if you need to. But, if you spend the time looking at your land purchase and the future of it from as many different angles as possible, your investment should reap the rewards you seek, at the very least. Like this article? Please feel free to share or post a link on your site:


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