Why Recreational Land Should Be Your Next Investment

by Caroline Kirby

When it comes to real estate the topic of recreational land can be confusing to some. However, the purpose of recreational land is just as it sounds—to be used for recreational activities, pleasure, and enjoyment rather than for commercial purposes.

From hunting to camping to off-roading there are plenty of activities to practice on your recreational land but before diving into what you can use your recreational land for we’ll go over some reasons why it’s a smart money move.

Why Buy Recreational Land?

Apart from enjoying your own space, purchasing recreational land allows you to put your money in a safe and stable investment, possibly one of the safest investments you could make. In addition, when you purchase land with cabins, quality roads, and access to utilities your value will go up.

A unique investment opportunity as you can actually enjoy it, make upgrades, and many other tangible opportunities you won’t find with other types of investments.

What to Do on Recreational Land

There are a handful of factors that will be helpful in determining if the land you’re looking at is actually worthy as well as defining what your recreational land can be used for.

  • Know you want to camp or build? Check that the land has good access to utilities.
  • Know you love fishing? Look for land with rivers and streams with good opportunities.
  • Know you want to hunt? Check for food sources among other items.

Apart from hunting, fishing, and camping you can also use your recreational land for many other activities like escaping the hustle and bustle of everyday life and enjoying some privacy with your family and loved ones. Riding horses or recreational vehicles like dirt bikes and 4-wheelers, cutting your own firewood, or doing some birdwatching are also all possible depending on the recreational land you’re looking at.

The Next Step

Now that you know what you can do with your recreational land there are some things you’ll want to assess on each piece of land as these factors could affect your purchasing decision.

  1. Neighbors: Walk around the outskirts of the land and see if your neighbors have a smelly farm, loud music, or even barking dogs. Are any of these deal breakers for you?
  2. Potential for Building: You may choose to build a cabin or even a vacation home later in life, are there good buildable sites?
  3. Poachers: Call the local game warden and ask about past problems with poachers or trespassers, if the former owner had issues you likely will too.

Before making any purchases, you should evaluate your long-term plans and consider the costs of any improvements you wish to make to the land. Remember land will continue to grow in value and gives you the opportunity to make long-lasting memories with your loved ones.

When you’re ready to start shopping around you can browse our properties here. At LandHub we offer thousands of resources and listings—if land is what you’re looking for, chances are we have it.

3 Vacant Land Investment Tips for New Investors

by Laura Mueller

Real estate investing is often heavily focused on physical properties. But investing in vacant land can provide major returns, and may just be one of the best real estate investments that you can make.

Unlike other types of real estate, vacant land requires minimal upkeep to maintain, and is more about investing in the right location at the right time than anything else. Of course, that doesn’t mean it’s always easy, or that all pieces of vacant land are equally valuable. So if you’re new to real estate investing and considering vacant land, check out the three vacant land investment tips below to make sure that you put your money where it counts.

Tip #1: Look (and Plan) Ahead

The value of vacant land is primarily in its potential — in particular the possibility that it may be prime real estate for future commercial or residential development. In order to hold that promise, however, the land needs to be properly zoned, with the right entitlements to ensure that your big plans for the future are actually achievable. After all, you’re not going to have a lot of luck selling your land off to a developer if they can’t actually use it.

When considering a plot of vacant land, be sure to get a full picture of what the land can and cannot be used for. Also take into account the topography and what sorts of utilities are already there versus what you’ll have to spring for. Cheap land isn’t so cheap if you’ll need to raze it and install water and other utilities before it will be appealing to buyers.

Tip #2: Tally Your Taxes

Vacant land is hardly a one-and-done purchase. You’ll have annual costs that you’ll need to factor in to your investment budget as well, and depending on where you’re buying and how long you’re planning to hold the property before you sell you may end up spending more in taxes than you ever actually bargained for. Be sure that you understand your tax commitment, and that it’s in line with your current and future financial planning.

Tip #3: Think Short Term

In general, you always want to be thinking of getting a return on your investment sooner rather than later. A lot can change in over time, and those changes could make your land less valuable. The sooner you can flip it to a new investor or developer, the less risk you’ll incur in terms of market changes and dips.

It won’t always be the case that you can turn around and sell your land, but timing should absolutely be a significant factor in your purchase decision. If you see the short term potential in a piece of vacant land and happen to have the funds to go all in, go for it. If you see the potential but it’s a couple decades off in the future, move forward with a little bit more trepidation. That’s not to say you can’t make a good long term land investment (plenty of investors do!), but that, as a new investor, it might not be the best way to get established.

Always take your time with any land investment. With a healthy amount of caution — and a whole lot of research — you can make sure you invest in land that will pay you back in dividends.

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