Vacant land isn’t exactly something that we come across every day. In fact, the majority of people would probably never come into possession of a vacant plot of land unless they had wealthy family members, or if they inherited the land from a generation of farmers living in a rural area. Most city-dwellers would never come across a vacant plot of land, but that doesn’t mean it’s entirely impossible.
If you look for land to rent or buy then you might be surprised at the number of options you have available to you. In fact, it can be rather cheap to buy a plot of land on the outskirts of a major city. Granted, it’s probably incredibly expensive to buy anything within a city, but that doesn’t mean it’s completely off the table–especially if you’re looking to grow a career in real estate.
What uses of vacant land should you consider?
Vacant land has a lot of different uses and it really depends on how you acquired the land.
For example, if you’ve inherited a piece of land or bought it cheap many years ago, then you could consider selling land for development and essentially “flipping” it for a higher price than you bought before. This helps you make a profit from the land which can then be invested into other real estate projects. This is the simplest option and usually requires you to have a lot more money reserved so that you can continue buying and selling properties and land.
The other option is to actually develop the land yourself before you sell it. There are a number of things you can do with the land such as turning it into a produce farm, a campground, a car park, or even an energy farm if you’ve got the resources and connections to do it. These are great options if you’re willing to invest a considerable amount of money into the project.
Do your research on local demand
It’s a good idea to do a bit of research on the local demand in your area. Developing a new home in a rural area might not be the best idea if it’s already struggling to get visitors, and you might not see much success starting a farm in the middle of the city. Make sure you find potential buyers and do a bit of research on the local real estate market before you invest.
Be realistic with what your vacant land can do for you
Understand that your vacant land isn’t going to make you immediately rich, even if you do have a plot of land in a busy city. The idea of making money off your land takes a while to come to fruition and you’ll need to invest a bit more money into your project depending on what you’ve chosen to do.
As long as you temper your expectations and go into this with the right mindset, you’ll find that it can be surprisingly profitable and also relatively affordable to start your own real estate career.