Among the few investment options that usually appreciate in value is real estate, and land in particular. Investing in land is not very difficult, if you have the money for it. Although buying land is relatively easier than buying a house, finding a piece of land that is cheap and well located is not easy.
Why You Should Invest in Land
Real estate prices have often followed an increasing trend in the past. Considering the huge costs involved in purchasing land, you may wonder why you should invest in it and not other investment options. Some of the reasons why land can be a great way to invest are:
- Unlike shares, funds and other investment options, land is a tangible investment that has a physical form
- Investing in real-estate, especially land, is relatively simpler
- Land is a cheaper investment option than a house
- The value of land usually increases over a period
- Land can be used for anything – housing, building an office, building a church or even a farm house
Finding Cheap Land for Sale
Although purchasing a piece of land can be a great way to invest money, not everyone can afford it. But the good news is that land can be bought at affordable prices, if you know how to find the right deals. Here are a few tips you can use for finding cheap deals on land.
Set a Budget
The first thing to do before you start looking for cheap land for sale is to decide on a budget and stick to it. You can purchase a piece of land for various purposes – to build a home, to set up your own business, to build a farm house or just as an investment. So, when you are preparing a budget, you should not only consider the purchasing cost of the land, but also other expenses involved like the taxes you have to pay, the cost of construction, and the commission (if you buy it through an agent). Also, as banks may not offer 100% financing for buying land, you should make provision for paying the initial deposit yourself.
Take Professional Help
Once you have a clear idea about how much you can afford for buying land, contact your local real estate agents and tell them your requirements. For faster results, you should look for a real estate agency that helps exclusively in buying and selling vacant plots. Be sure to tell them about your preferred area or location and your budget, and make sure you know about their charges and commission before you make a deal with them.
Search the Classifieds
Another way to find cheap land for sale is to browse the newspaper and internet classifieds. A number of people who want to sell their property often prefer this mode of advertising for direct dealing with the buyer and to avoid paying commissions.
This can be beneficial even for you as it not only saves you the agent’s commission, but also provides real-estate news and information, including government auctions in your area.
Attend Government Auctions
One of the best ways to find cheap land is to attend government auctions. Government usually sells off land that has been seized from fraudsters, tax defaulters, and even criminals, at public auctions. Such land, even in a good location, can be auctioned for a reasonable price. So watch out for these auctions and bid your way to a good deal.
Watch Out for Foreclosures
Another cheap way to invest in land is to look for foreclosures or pre foreclosures. You can get good deals when the land is being sold by land owners who have no choice but to foreclose, because of a financial crisis. However, you should be careful when choosing such properties as you can even end up with unusable properties, or properties that are beyond your budget. Checking the area and the real estate prices in and around it will help you make a better choice in such cases.
Buy Land in Upcoming Localities
You can find good land deals in places where the population is very low and where there are few takers for the property. However, investigate the area carefully, and check the living conditions around it before you invest. But don’t just go for any land at any location just because it’s cheap. Make sure that the area has at least the basic amenities and suitable conditions for living.
Invest in Land Abroad
If the value of your local currency is strong, real-estate investment in foreign countries may be an attractive option. This, again, may usually be practical when you are buying land just for investment, but not when you want to build a home or set up an office.
Things to Remember
Cheap land is something everybody wants, but it is difficult to find. This aspect gives scope to real-estate scammers who may want to make money out of it. So before you make a deal on cheap land, consider these points:
Don’t Buy in Doubt – If you have even the slightest doubt that you are getting pulled into a land scam, consult a real estate lawyer and get the situation cleared.
Think Before Purchasing in an Isolated Area – Purchasing land in the middle of nowhere because it’s cheap is not a very good idea. Although you may spend a meager amount on the land, you may have to shell out more than that to get the basic amenities in the area.
Make sure that the land has a clear title. To get the best deal on land, choose reliable sources, have patience and consult an experienced real-estate lawyer before you sign any agreements.