What Is Raw Land?
There are all kinds of investments that you can make, but one of the best investments around is raw land. This may be a new term to you, but that’s okay, by the time you get done reading this article, you’ll have a firm grasp of the basics.
Raw land is a broad term for unused or undeveloped land. To start investing in raw land, you will need to know what to look for, and an agent that specializes in raw land sales is the kind of person you’ll want to talk to.
Land investing is not something that every real estate agent will be an expert at so you really should not be working with the same person who helped you purchase your home. When investing in land, you need an agent who talks to officials of the city as often as land owners.
This is because you need to know a lot about the basics of raw land investing before jumping into it. For instance, do you know if city utilities will be able to reach your lot? Of course since it’s never been developed, you won’t know unless you have someone to help you out, like an agent with special knowledge.
But not everyone buys land with the plan of building a house. Many people purchase raw land to hold onto until a later time. The great thing about investing in land and especially raw land investing, is that involves one of the few, if not the only asset, that becomes more valuable over time. This is known as appreciation. Some investors engage in what is known as land banking, which is the practice of buying land and reselling it at a later time for a profit.
Unlike your car or your computer or most of your other possessions, land investing involves an asset that, in most cases, will grow in value over time. The reason for this is that there is only so much land on the planet that people can buy. This makes raw land a valuable commodity.
How Do I Buy Raw Land?
First of all, before you go out and buy anythng, I recommend going out and talking to some people around the area where you intend to invest in to get an idea of whether that particular location has potential or not. The best people to get advice from are farmers. They usually have a lot of experience buying and selling land, particularly farm land. But, probably the best route to take is to carefully select a knowledgeable and experienced agent.
The right agent will be someone who will be aware about any current zoning issues in the area, which could factor into your buying decision. Since this is such a specialized area of real estate, the right agent will also be someone who is experienced in land investment. They should have good relationships with officials in the area since you will need to be getting a lot of information from them when starting out.
If you get the right agent who specializes in this sub-niche of real estate investing, that is half of the battle. Your agent will undoubtedly have listings currently for sale and may even have several sales that are unlisted. They will know all of the right questions to ask and will guide you through the process of investing in raw land.