One smart recession proof idea that works in today's economy is buying cheap land. Upon examination of any expensive parcel of real property, one may note that it probably started out cheap at some point, probably when nothing was built on it yet. Certain parts of New York City are some of the most valuable and desired real estate in the world. Manhattan was sold to the original Dutch inhabitants for about twenty three dollars worth of shells and trinkets.
There are many excellent locations in America today to make these investments. Much of the eastern portion of the nation is developed and New jersey is one of the most densely populated states. In the western portion of the country many states including Texas, Wyoming and Arizona still have large, wide open tracts that can be purchased for pennies on the dollar.
There are many reasons why these properties may be sold cheaply, for even less than $500 per acre in some cases. This may be because the owner has come into money troubles and in times of economic difficulty, these investments can not be properly funded. Owners looking for fast cash may agree to sell at a deep discount.
Occasionally, undeveloped land may lie vacant for long periods of time. An investor pays little for it and simply pays the property taxes on it each year. This is the cost of holding it. In the future, the investment becomes much more valuable because of local growth. This is known as being in the path of progress. If one is able to acquire property in an area that is vacant at present but expected to be developed at some point in the future, there is great potential for growth and future profits.
In many areas across the United States, it may make a lot of sense to own such property while it remains vacant because one may be able to acquire the mineral rights. If natural gas, or oil or some other mineral is discovered on or near the acreage, the value skyrockets. Mining companies will pay exorbitant amounts in order to reach an agreement to lease or purchase the rights to place mines on the property and begin lucrative mining operations.
The same as all property, the decision may be made to construct improvements. Buildings like gasoline filling stations, strip malls or other things may be constructed atop the ground. If there is a major thoroughfare or interstate highway with access points along the property's borders, so much the better as far as this strategy is concerned.
It is not always easy to obtain financing on raw, undeveloped parcels. When buying cheap land, it is best to negotiate the best price possible, even under $500 per acre, because banks are historically not willing to loan much money on these investments.
There are many excellent locations in America today to make these investments. Much of the eastern portion of the nation is developed and New jersey is one of the most densely populated states. In the western portion of the country many states including Texas, Wyoming and Arizona still have large, wide open tracts that can be purchased for pennies on the dollar.
There are many reasons why these properties may be sold cheaply, for even less than $500 per acre in some cases. This may be because the owner has come into money troubles and in times of economic difficulty, these investments can not be properly funded. Owners looking for fast cash may agree to sell at a deep discount.
Occasionally, undeveloped land may lie vacant for long periods of time. An investor pays little for it and simply pays the property taxes on it each year. This is the cost of holding it. In the future, the investment becomes much more valuable because of local growth. This is known as being in the path of progress. If one is able to acquire property in an area that is vacant at present but expected to be developed at some point in the future, there is great potential for growth and future profits.
In many areas across the United States, it may make a lot of sense to own such property while it remains vacant because one may be able to acquire the mineral rights. If natural gas, or oil or some other mineral is discovered on or near the acreage, the value skyrockets. Mining companies will pay exorbitant amounts in order to reach an agreement to lease or purchase the rights to place mines on the property and begin lucrative mining operations.
The same as all property, the decision may be made to construct improvements. Buildings like gasoline filling stations, strip malls or other things may be constructed atop the ground. If there is a major thoroughfare or interstate highway with access points along the property's borders, so much the better as far as this strategy is concerned.
It is not always easy to obtain financing on raw, undeveloped parcels. When buying cheap land, it is best to negotiate the best price possible, even under $500 per acre, because banks are historically not willing to loan much money on these investments.
About the Author:
Click here for more information on Cheap Land For Sale and Cheap Land In South Dakota
No comments:
Post a Comment