When it comes to investing, the ability to buy land cheap is a great skill to acquire. Real estate overall, is one of the smart places where you could put some of your money. It is one of the most stable assets that tends to increase its value over time.
Certainly you should not put ALL of your money in any one place, however it is a wise move to place some of your wealth in real estate, property or land.
WIth land specifically, as the gurus say “they aren’t making any more of it” which continues to push demand up.
Also everywhere you look, within cities, rural towns and just outside the towns, you can see more and more land being developed for commercial centers, homes and apartments.
If you can buy land cheap, then you are in a great position to hold it for the long term, or have somewhere you can build one day or pass on to your future generations.
When you buy land cheap, you ensure your own security as you always have somewhere you can go. You cannot be kicked off or told to leave (assuming you keep your property taxes up to date!)
Why Look To Buy Land Cheap?
Perhaps you want to create a dream home for you and your family?
Perhaps you want to start a business on the land- Dog kennels? Stables? Farming? Animal breeding? Shooting range? There are so many options and so much opportunity.
Perhaps you cannot quite stretch to the $350,000-$500,000 required in most states to buy a pre-built house on a nice street?
No problem- instead- buy cheap land and put a cabin on it or a manufactured home, or a tiny home (depending on the zoning).
As the land increases in value over time, you may be able to trade up.
Assuming you do some of the work to drill a well or install septic system, or generate power from solar energy, other people will pay handsomely for the privilege to have that already done.
Seriously there is a serious business here for the right person who has either the DIY skills or the project management skills to get the basic set up done..
Buy land cheap that you can afford, set up utilities and re-sell the land at a higher price. Once you have the skills and know some reliable contractors, simply rinse and repeat.
Keep looking to buy land cheap with larger and larger parcels.
Many people do not want to do this work, but are happy to pay a higher price to have it already done.
Can you buy land cheap despite being short in cash? Yes!
The beauty of most land deals is not only is the purchase price often very low. But you also often do not need to part with all the money right away. Most land sellers are happy to discuss owner finance terms.
This means when you buy land cheap, you do not need all the cash right away plus you do not need to seek a bank loan or get a credit check done.
If you have had poor credit in the past, there will be no problem.
If you have unstable income from being self-employed- no problem.
Of course you should never buy land that you cannot afford- but at least you can buy land cheap, get started then gradually trade up.
You don't have to be super rich to invest in land.
Depending where you wish to acquire land, you can buy land cheap, in fact - very cheap.
For some examples of great land available, check out our cheap land for sale
There are acreages and prices to suit almost everyone.
What To Look Out For When You Buy Land Cheap
Check The County Zoning
You must always comply with the local zoning laws whenever you purchase any property. The same applies for land. The rules are usually very clear. The seller may be able to supply you with information on zoning- what you can and cannot do.
Or simply call the county planner directly and get confirmation from them.
Zoning may be:
Residential
Commercial
Industrial
Rural
Agricultural
Or in some areas there may be no zoning restrictions at all
Check out our land for sale in New Mexico
Check out our land for sale in Nevada
Check out our land for sale in Missouri
Check out our land for sale in Oregon
Street Access
Check what your access is and rights of way. Some available land will have street access. Other land available may be super cheap to buy as it is landlocked with no legal access.
This may not be a problem if you just wish to use the land for recreation purposes but if you wish to live there or start a business there, you must have legal access, or you may face problems later in.
Many counties have acknowledged this problem and created easements on all neighboring parcels to allow access for everyone.
Setbacks
Setbacks refer to building restrictions when building a structure.
Their main purpose is to ensure privacy, public safety, and environmental protection by not building too close to the property boundary..
What Other Costs Are Involved When I Buy Land Cheap
Great question. If anything is cheap- always beware of hidden costs.
Check fees for closing.
Check if there is any interest rate applied to the loan if you enter an owner finance deal.
Check if there is any early repayment penalties.
If you need to set up utilities, you will need to get a few quotes to have an idea what a septic system will cost, how much to bring power to the site- unless you choose to use solar energy, and whether you will drill a well or collect rainwater.
Then consider where you will live- will you be allowed to live in your trailer until building is complete? Will you build a traditional home? Will you use a shipping container home? Will you live in a mobile home or manufactured home?
Only you can determine this according to your budget, the needs of your family and of course the local zoning laws.
The data from the National Association of Home Builders shows that building a home has a median cost of $289,000. It can be less or more depending on your preferences.How To Buy Land Cheap-Consider For Sale By Owner
So where do you go to find land available for sale?
There are land brokers around with generally more expensive land parcels for sale like ranches and farms. There will be higher fees and commissions to pay for their services.
There are also land buying/selling platforms to consider with some land from brokers, some land from realtors and some land available directly from the sellers.
If your main goal is to buy land cheap, your best bet will be buying land directly from the seller. You may have seen this as FSBO or For Sale By Owner.
When you deal with the seller directly, you will be assured of getting the best deal. You may be able to negotiate a little and get a little more knocked off the price. And there will generally be very small or no fees and no commissions to pay.
You will also be able to negotiate better terms to buy land cheap- if you prefer a higher down payment with smaller monthly commitment or a smaller down payment to get going then higher monthly payments.
Sometimes the land owner will be able to accommodate your requests and sometimes not, but if you want to buy land cheap, it is always worth asking.
Buy Land Cheap- Know Your Pricing
Don't rely on one source but check out different listings and compare the land and its prices. See what other people are selling for in the area and work out what you are willing to pay.
Land will be priced differently depending on availability of utilities, street access, local zoning, demand in the area, local demographics.
It will also be priced differently due to the owner desire to sell.
Some sellers will have inherited the land- they have never seen it and do not want it. They may sell to you at a very cheap price.
Others may know of some important developments about to happen in the county, or a major shopping center having been approved or a big company about to move in and provide a ton of work in the region. They will price it super high as they know it is far more valuable in a few years than most people realize.
These people may also be willing to pay more for adjacent parcels (if you have any available to sell).
When you find a parcel you like- you have two options.
Either take drive out to see it, check out the local town, shops nearby and services available.
Or in most cases, you can do it from the comfort of your own home- by going on Google earth or google maps.You can get a very good feel for the area with this amazing (free!) technology. Check out where your nearest neighbors are, how close the shops are away, transport links, local rivers, lakes and so on.
Buy Land Cheap -Alway Check Outstanding Liens and Taxes
If the previous owner did not pay their property taxes for several years, those taxes remain with the property, not the previous owner.
Be sure to check with the seller and make a quick call to the treasurer to ensure there are no outstanding taxes due on the parcel.
Otherwise if may be that your cheap land parcel does not appear so cheap if you become saddled with a $3000 property tax bill as well!
To be honest, in many cases, if the property you are looking at is vacant land in rural locations, the property taxes are often very low.
But it is important to check that you have no nasty surprises awaiting you when you think you are buying land cheap.
Buy Land Cheap Then Add Value
Some buy land cheap to provide a home for their family, or to develop a business.
Others buy land cheap as a long term investment- they know it will appreciate over time as vacant land becomes more scarce.
But if you want to move quickly and really make some serious coin, you will need to add value in some form.
There are many ways to make money by buying land cheap.
You may choose to buy land cheap, add either utilities or a home, then sell on to a grateful young couple.
You may choose to buy several parcels of land, live on one parcel, develop some of them and hold others for the long term.
You may buy a large parcel of land cheap, then subdivide the land into smaller lots which are more affordable for more people, keep a couple of parcels and sell the rest off.
You may buy land cheap then establish a business yourself.
Maybe there is a demand for a paint-balling center near you?
Maybe you could lease the land out to hunting clubs?
Maybe you establish some stables or dog kennels, or sell eggs from your chickens.
There are so many creative ways of getting the land to provide you with a great income.Buy Cheap Land Summary
To buy cheap land is always a good move. It is a valuable, stable asset that has stood the test of time. It will continue to become more valuable over time and can provide you immense satisfaction, tons of fun and even a great living along the way.
If you are considering buying land feel free to get in touch or check out our cheap land for sale here.