Investment Land Feasability
- Land Location |
- How to Buy Land |
- Land Features |
- Investment Timing |
- Opportunity Costs |
- Community Acceptance |
- Single Lot Investments |
- Residential Lots |
- Speculative Lots |
- Lease vs. Resale |
- Building to Suit |
- Acreage |
- Acreage for Resale |
- Land Evaluation |
- Land Promotions |
- Land Bankers
Land Location
Primarily, land location determines its potential future growth in value. Although some enterprising promoters have earned large profits from the sale of parcels of relatively isolated building land, well-situated property is more likely to increase in value.
For instance, land lying within a three-mile area on either side of a major highway connecting two neighboring communities is almost certain to increase in value over time. Generally, communities tend to grow toward each other, developing increased demand and higher values for intervening properties. And, as a rule, the closer to the highway a parcel of land is situated, the higher its potential value.
Similarly, the purchase of raw acreage at the periphery of a community by an investor who wishes to hold the land for appreciation requires an educated prediction of the direction in which the town or city will expand. An incorrect estimate of future growth patterns will result in the investor's waiting longer for profit realization. And as the waiting period increases, the time value of money affects the average annual rate of return.
This relationship of location to value is equally applicable to single lots and large tracts of land. For example, a lot purchased on a major arterial street in anticipation of future rezoning for a more intensive use may prove to be an extremely profitable investment if the neighborhood grows in that direction.
The reverse is also true.
Another example would be a lot that is located on the exterior boundary of a subdivision and that overlooks a large, vacant parcel of building land for sale. If the lot is to be used for the construction of a home, then the development of a shopping center, office building or other commercial activity on the larger parcel may diminish the lot's value.
- Land Location |
- How to Buy Land |
- Land Features |
- Investment Timing |
- Opportunity Costs |
- Community Acceptance |
- Single Lot Investments |
- Residential Lots |
- Speculative Lots |
- Lease vs. Resale |
- Building to Suit |
- Acreage |
- Acreage for Resale |
- Land Evaluation |
- Land Promotions |
- Land Bankers
