Land News 800x150 full size

What State Has the Cheapest Land to Buy?

what state has the cheapest land to buy?

Subscribe to our Land News Email

Published date:

April 27, 2020

Last updated date:

April 27, 2020

By Manny Manriquez

Many people love the idea of real estate in the US; they believe there’s great potential. Apart from the potential, the pricing of land in the US is transparent; you’re not out of options for real estate agents. However, investing in real estate in the US isn’t as easy or seamless as it sounds. Only a few people looking to invest in the US understand what is involved. Real estate investing has always been an appealing venture for investors because of the incurrent income it brings. The interest rates are low and have cheap debt; mortgage rates are also low. The US is the hot seller’s estate market as of now, with record-high annual pricing growth and low inventory. So, if you’re looking to invest in US real estate, be prepared for a fight because you’re not alone. The good news is you have lots of options for real estate investing in the States, including choosing how to pay. If you’re a cryptocurrency enthusiast, you can buy Bitcoin Cash and trade it for your asset. We've included real estate investing information you need to be familiar with and what states have the cheapest lands.

How to Invest in Real Estate in the United States

If you’re looking to invest in real estate in the US, the first thing to do is learn how to do it. If you’re clueless on how to invest in real estate, you’ll be misled and, worse, invest in liability. So, below are four real estate determining factors to consider before you begin to invest.
  • Litigation Risks

First off, understand that real estate investments in the US have the highest litigation risk in the world. It has nothing to do with the US being a western country; it’s because it is the US, and people love suing one another. So, if you’re not used to that, ensure your attorney properly structures things for you before you get started.
  • Asset Protection

Whatever you do, you need to have an asset protection strategy; put properties in an LLC in your investment state. It can get complicated if you’re investing in several states simultaneously, but you would only need to work with your lawyer. However things go, ensuring your assets are protected keeps you from getting sued when “accidents” happen on your land. When that happens, all the other properties you’ve invested in are in danger of being taken away.
  • Tax Return Filing

There’s a need to file a tax return if you plan to invest in the US. If you’re a foreign investor, you should know that there are real estate taxes by state and different tax treatments. Whichever way it is, the tax body you should ensure you don’t screw with is the IRS. US citizens are more afraid of the IRS than other countries are of their tax authorities, but you’re good as long as you’re law-abiding.

States in the US with the Cheapest Land to Buy

Land purchase is generally a good investment; in the US, the prices vary greatly. Where some states sell as high as $200,000 per acre, you can find some for less than $200. If you’re looking for cheap land to buy, you’ll be moving towards the western parts of the country. Understand that “cheap” is relative, especially considering that more than half of US lands are priced above $10,000. Below are states with land prices below $10,000 per acre.
  • Montana

The real estate market in Montana is one of the best and among the wisest choices for potential investors. Purchasing land assets in Montana can make that dream of owning the best recreational property or private home come true. It’s also a great spot to invest in if you’re looking to set up base camp near fishing rivers and lakes. Land in Montana is very inexpensive to own as an investment; there aren’t mortgage payments or utility bills to pay. Besides the low cost of Montana lands, you also have options – you can leave the land as it is or build something. Once you buy the land, it is yours; whatever you do with it is up to you. One thing’s certain; you will have bragging rights about being a landowner in Montana. A notable benefit of owning land in Montana is that Montana lands don’t depreciate. Real estate investment in Montana is one you can go into and watch grow with something to show for it. It isn’t often you find an investment that gives you this; it grows in value without any effort.
  • New Mexico

New Mexico has different land opportunities for investors, whether you’re looking for cheap or expensive land. You can find land as low as $1,000 per acre in New Mexico and as high as $12,000 per acre. The area where you acquire the land will determine how much you spend, but most of them are below $10,000/acre. New Mexico is your go-to real estate investing destination if you’re looking for affordable land with many uses. People choose to buy land in New Mexico for different reasons, including its strong ranching community and cost-effective characteristics. New Mexico isn’t bereft of space for large-cattle rearing; the state has cemented its place in the ranching world. However, there’s more to New Mexico land than cattle ranching; you can also find alpaca, organic livestock, and pistachio ranching. Plus, the state has relatively cheaper property taxes than the surrounding states; New Mexico land has low development costs. Besides the ranching opportunities and low costs, New Mexico has beautiful landscapes and favorable weather. You’ll find the state a dream come true if you enjoy culturally-enriched activities, such as hiking, climbing, rafting, skiing, and horse riding.
  • South Dakota

South Dakota is one of the ideal places to get relatively cheap land that you can use for anything. Land price in South Dakota has risen by about 9.7 percent per year in the last two decades. As of 2019, the average price of land per acre in South Dakota is $3,030, although that depends on the area. South Dakota has one of the best qualities of life and one of the strongest economies in the US. Real estate is a promising venture in South Dakota, which is expected to increase in the coming years. Although the state is most famous for its national monuments, it has much more to offer than views. The high quality of life South Dakota offers is at a lower cost; it’s a great place for people seeking a work-life balance. The farmlands in the state are ridiculously big, and there is no shortage of fertile hunting grounds.
  • Wyoming

The real estate value hasn’t changed much in Wyoming since 2015; it has held steady at $660 per acre. The state is a mecca for fly-fishers, boasting more than twenty-two game fish species, including sturgeon, pike, and whitefish. Wyoming is the least populated state in the US, with over 90% of the land categorized as rural. That’s probably why many people associate it with outlaws and ranchers. However, Wyoming has been a great site for real estate investing, tourist attractions, and inspiring adventure for years. One of the major benefits of buying land in Wyoming is the tax benefits; no income, inheritance, real estate, or excise tax. Wyoming taxes have undeniable value when compared with those of other states; it is a no-brainer investment. Plus, there’s no limit to what you can do on your Wyoming land, from manufacturing to pasturing, for investment or settling.
  • Nevada

Nevada has over 274,000 acres of land for sale, with an average listing size of 982 acres. One acre of land in the state is currently averaged at $153 across different counties. The counties with the most land listings for sale in Nevada include Nye County, Pershing County, Mineral County, Elko County, and Humboldt County. Land types and uses in Nevada include mountain land, hunting land, agriculture land, waterfront land, and ranch land. Buying land in Nevada is a smart move, especially considering the millions, even billions, pouring into the state as of now. However, it isn't easy to find a real estate agent in Nevada owing to the cheapness. Brokers aren’t ready to work for the low commissions on Nevada land; buying directly from the owner is the best. Nevada landowners are typically honest people looking to sell and leave their land in good hands. Real estate investing is a cool business if you know what you’re doing. There’s a need to learn about the laws, rules, and regulations of a state before you purchase its land for investment. When you have sufficient information about the area you’re looking to invest in, you’ll make more informed decisions. Now’s a great time to enter land investing, especially with big companies looking to build experiences in the great outdoors. You can buy land at cheap costs in any of these places listed, hold it, and resell it at far greater prices. Real estate investing is perfect for downsizers who want to live cheaply without working hard. It is a safe bet for gridders and potential investors preparing for the “just in case” situation.

All Land News

Leave a Reply