Is land a good investment?

Hi, land is a good investment if it is in a good location. You want to think about what type of investment property as well. If its going to be used for a multiunit/ apartment complex, you want it to be in a busier residential location. Make sure there are businesses walking distance away. For commercial property, you want it to be on the main road. Make sure the building stands out. Also most importantly, make sure you get the guidelines for the land if you do end up purchasing. Make sure it is eligible for your intended use.

Land can be a strong long-term investment, especially in growth areas, but it typically does not produce cash flow and may carry holding costs like taxes and maintenance.

Land can be a good investment but it requires patience and the right location. It produces no income, you still owe property taxes every year, and it is harder to finance than a regular home purchase. Go in knowing you are holding a passive asset that costs you something every year until you sell or build. Location is everything with land. In the path of growth it can appreciate significantly. In a stagnant area it can sit flat for decades. Before you buy, research what is happening around the parcel, nearby development, infrastructure plans, and zoning trends. For your situation it sounds like a reasonable entry point into real estate if the price is right and the carrying costs are manageable. Just make sure the land is buildable if that is part of the long term plan, and confirm utilities, access, and any restrictions before you close.

ARe you able to pay the taxes on the property while you hold onto it and wait to build? If you are buying it just to see it increase in value, that is something that a local professional REALTOR can answer for you. In many cases, I do not see huge returns on investment of land by itself to hold and sell for more at a later date unless it is near an area that is in development or has growth potential near it. So ask a local REALTOR about what you are specifically wanting to accomplish. They will be able to give you better direction on your local goals.

Yes but depends on the area as well.

Great question! Historically yes land is a good investment over the long term. Outside of booming market bubbles, land, and real estate give stability to any portfolio of investments. Chat with your CPA on tax advantages and the affordability of the land you are looking to purchase.

Do your home work. Not all land is buildable. I believe buying land is a huge value when you go about 30 miles out from where everything is happening...find land...buy it...hold it...and wait for development to catch up to it in about 10 years or so...then sell it for a mint! BUT...if you buy bad..its just not gonna go well. Go to your local zoning commission at your government office and ask what their plan is for the future...they will tell you where commerce is heading and go there.