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Rob & Catherine Hallberg
Associate Broker, MRE
CRS, GRI, ABR, ASR, ePro
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(520) 407-8667
(800) 752-1286
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Investing in Land & Vacant Lots | |
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There is one universal truth about land that is also its most important characteristic; There is a finite amount of it, which, combined with location, is what gives land its value as a real estate investment.Land and Vacant Lots are similar in that they are both sold as "unimproved" property, meaning without structures or buildings, but they are very different in risk and investment potential. Vacant lots have been surveyed, recorded and are often found in subdivisions. Much information is usually available about vacant lots, such as availability of roads, water, power, sewers or percolation tests if septic tanks are required, and zoning has been established that defines specific use. The availability of all of this information is critical in determining actual market value, which also lowers investment risk as compared to vacant land. Vacant lots in established subdivisions tend to be the lowest in risk and investment potential as market value is often well established. Investing in vacant, unsubdivided land often carries both the greatest risk and upside investment potential. Investors must answer the infrastructure questions themselves, or at least validate the information given them. Zoning changes, development approvals, roads, utilities, water rights and availability are often not guaranteed, and decisions must be made based mostly on research and forecasts.There are also multiple sets of rules when developing vacant land, depending on how many lots will be created by subdividing. Vacant Lots and Land may simply be held and sold without improvements; significant capital may be invested and new subdivisions created; or the investor may choose something in between. Most large tracts of land and vacant lots are found outside city limits, and the properties that are the farthest away from current developments generally have the lowest cost per acre. The more "raw" the land (infrastructure questions unanswered), the more important it is to seek professional assistance before making any investment decisions. A professional not only knows how and where to find the answers, but, more importantly, knows what questions must be asked and answered.
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Our objective in designing InsideTucsonRealEstate.com was to provide the absolute best, single-source resource for information and advice pertaining to the sale or purchase of real estate.In order to achieve these high standards, we often select material that was written by some of the top Real Estate Professionals and Financial Consultants in the Much of this material is copyright protected, and we have obtained the permission of these authors to make it available for your personal use. Please note, however, that the content of the material and any recommendation included therein are the opinion solely of the author and, by inclusion here does not constitute an endorsement by this website, Catherine & | |
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10222 East Rita Road, Suite 170 • Tucson, AZ 85747
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Serving Greater Pima and Cochise Counties.
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