7 Pros of Buying Undeveloped Land for Sale

Undeveloped land, often known as raw land, is a space devoid of structures, driveways, or public utilities. It’s frequently available in rural land locations off county highways. Undeveloped pieces of land offer endless possibilities for their use and better returns at lower risks.

Still contemplating whether buying an undeveloped acre tract is the right move for you? Below are seven top benefits of buying undeveloped land for sale to help you understand why this is a wise investment. 

Greater Flexibility

You can use or build anything you want on undeveloped land. That implies that, as long as your plans comply with local zoning restrictions, you can use your property as you please and develop it just as you’ve imagined. And, since there’s nothing on the parcel, you won’t have to worry about features that are a deal-breaker and must “live with.” 

Long-Term Appreciation

Unless an external factor, such as erosion or an earthquake, has an impact, vacant land will stay in the same state where you’ve purchased it, unlike structures on commercial property that eventually deteriorate if they are not maintained. As a result, undeveloped parcels may serve as a superior long-term investment compared to vehicles and upgraded properties, which typically depreciate over time unless they undergo regular renovations.

More Affordable Than Developed Land

Because there is nothing on undeveloped land to contribute value, it will typically be less expensive than developed land of comparable size. The lower property taxes and the lack of utilities on these acre parcels also contribute to the overall affordability of undeveloped properties.

Not As Many Maintenance Costs 

Purchasing land without buildings and improvements means less upkeep. The average cost of house ownership includes maintenance and repairs for appliances and essential home systems. These can add up to 1% and 3% of the home’s purchasing price. However, on undeveloped land, there are no HVAC, plumbing, or roof issues, which means no unexpected repair costs.

Less Competition

Undeveloped land is less competitive to acquire than a typical single-family home or other residential property for sale. Most buyers don’t want to plan out a whole house of their own or deal with the stress that could accompany building a home. As a result, they usually seek out properties that they can move into immediately. But if you have the time to wait, buying land and avoiding the competition may be a wise choice, especially given the current state of the property market, characterized by high demand and low inventory.

Easy To Buy

The process for purchasing undeveloped land for sale is typically relatively simple. You can buy most undeveloped land with cash and get outright ownership without concern about interest rates or a mortgage. In addition, if you purchase land via verified sellers like Discount Lots, you can benefit from flexible payment and term options if you don’t want to pay the whole sum at once. 

Great Return On Investment

Vacant land offers virtually endless possibilities for generating ROI. You could rent the acre property for farming or hunting, outdoor advertising, or wind farms. Building and renting storage space can also be a lucrative venture. Depending on the property location and zoning regulations, other money-making options include creating an RV park, building a holiday lake house or a mountain getaway for renting, or establishing an open photography studio that capitalizes on the natural beauty and picturesque views.

Important Things to Do When Buying Vacant Land

If investing in undeveloped land sounds like the perfect choice, here are some steps to ensure you’re buying the right property.  

Find the Right Plot of Land

You must first decide how you will use the land. Then, you’ll need to go through available land to choose a property that would best fulfill that need. Easements, access to utilities, special permits, local zoning regulations, restrictions, and proximity to other buildings or properties are some of the factors that may affect or enhance the value of the property in the future.

Ensure There’s Convenient Access to the Property

If the private property you’re thinking about purchasing is on a public road, access won’t be a problem. However, some properties don’t have direct access, so you’ll probably need to pass through someone else’s piece to get to yours. Without an easement, your beautiful property would be landlocked, reducing its potential uses and value.  

Consider Incentives

As you examine various land development markets, consider regions with particular incentives. For example, cities frequently offer tax breaks or other perks to encourage builders to construct to help promote growth in certain areas. If that’s the case, the city may also relax the criteria for obtaining clearance for construction proposals. Consult your local government about potential incentives, and think about how these initiatives might affect your bottom line.

Get Your Finances In Order

Undeveloped land for sale can be very challenging to finance. Your lending institution might not offer financing on the land, as vacant land doesn’t have as much leverage as developed land. To avoid the lengthy and stressful process of applying for a loan, you might consider buying acreage for sale online. Dealing with trusted land sellers like Discount Lots may result in a hassle-free experience for you. A variety of land listings are available, including special off-market offers. You also have a variety of personalized payment alternatives to match your needs.

Final Thoughts on Buying Undeveloped Land for Sale

There are numerous benefits associated with an undeveloped land investment, including greater flexibility, affordability, and little-to-no maintenance costs. Buying raw land is also easier compared to developed parcels as there’s less competition and you can pay in cash. 

If looking for undeveloped land for sale near me, Discount Lots should be your first stop. Our land professionals can help you find your dream property, ensuring a hassle-free experience. Additionally, we provide flexible payment arrangements with a down payment as low as $1. And, there is no formal underwriting procedure or credit check!

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