Are you interested in investing in land or adding to your portfolio? Knowing the value of land often requires more than meets the eye. In short, where you want to buy is as, if not more, critical as what you want to buy. To best maximize your investment you will want to take note of the following.
Infrastructure
While it’s difficult to place a specific dollar amount on natural resources such as live water, mountains, timber, trails, etc., they are an important component to land value. As with most real estate, where you want to buy greatly factors into the cost and value of a property. The use of a property also largely determines the value of a specific plot of land. Keep in mind that developed land (defined as area covered by roads and buildings) only accounts for a small percentage of the available land in America, but holds more than half of the total value.
Location
The more populated an area is, the higher the price tag. For example, the eastern seaboard is very densely populated with large cities like New York. In addition, states like New York and Massachusetts have some of the oldest modern structures anywhere in the country. You will also find some of the smallest states in terms of land on the East Coast. Rhode Island, Connecticut and New Jersey all feature a land value greater than the median home price due to land area available. Southern and Midwestern locations offer lower prices with more land and resources available over a larger area of land.
Function
Having a clear plan for what you intend to use your land for will greatly enhance your budget and return on investment. If hunting is your passion; Oklahoma, Texas, Minnesota and Wisconsin will offer the amenities you desire. Tennessee, Arkansas and West Virginia routinely rank as the most affordable places to buy residential land. For farming, Louisiana, Arkansas and Nebraska are your best bet, while the cheapest land near water can be found in Oregon, Washington, South Carolina and Florida. Finally, if you want the country feel, but still have access to the city, buy vacant land in the southeast.
For more information about finding the perfect plot of land, visit www.UnitedCountry.com today. For more than 95 years, we have helped clients live the lifestyle they desire.
Sources:
https://www.usatoday.com/story/money/2019/05/08/the-most-and-least-valuable-states/39442329/
https://howmuch.net/articles/most-and-least-valuable-states-of-usa
