Are you wondering if you should buy land in Arizona? Maybe you have plans for development. Maybe you found a gorgeous piece of natural wilderness that you thought would make a fantastic recreational retreat. Or maybe you inherited a property and just aren’t sure if you should keep it. Whatever your reason for wanting to buy land, we can help you achieve your real estate goals. In this post, we explore the pros and cons of owning land so you can decide if buying is the right choice for you.
Pros:
Low Purchasing Costs
It can be pretty simple to acquire a land investment. In most cases, you can get started for only a few thousand dollars. Depending on your plans for the land, you can typically find what you want at a very affordable price. You can buy land here
Land Often Increases In Value
There is a solid chance the value of your land could go up. However, this can be tough to predict and impossible to guarantee. Always keep yourself on the pulse of what is going on where you live. Capitalize when you can on anything going on in your area that can increase the value of your land!
Low Maintenance
Land typically requires little to no maintenance to own. You don’t have to worry about making repairs, dealing with bad tenants, or utility costs. Your property taxes will be considerably lower and are usually one of the only expenses you will face.
A Blank Canvas
You can do so much with the right piece of vacant land! Maybe you don’t want to keep the land for personal use. But there’s no shortage of ways you can still use the space and make a profit in the process. You could develop it, lease it out to farmers or other agricultural pros, improve it then flip it, make it into an event space, create a recreational retreat experience, and more!
Cons:
It Might Decrease In Value
Land doesn’t always rise in value. If a neighborhood cools off, there can be considerably less demand for the property. This all comes down to your timing, but don’t expect land to necessarily increase, especially not right away.
Zoning Conflict
It can be difficult to obtain a zoning change if that is what you are intending to do. You might experience backlash from neighbors or find yourself buried in red-tape in order to make it a reality. If you own a large parcel of land, you may not be able to subdivide it in the manner you would like.
Environmental Changes
Endangered animals or other environmental protections can limit your ability to develop a piece of land. Even if these animals aren’t currently present on your land, it’s not to say a bald eagle won’t come to make a nest on your lot, prohibiting all building to take place. Of course this doesn’t happen every day, however, if you live in an area where there are many protected species, don’t be surprised when one takes up residence on your inviting, vacant lot.
Miss Out On Other Investments
One of the biggest cons of having your money tied up in land is the chance you will miss out on a much better investment. Sure, you can make money from land. However, it can be more difficult to liquidate quickly should something come up making you want to sell. There are excellent, profitable investments out there, and if your cash isn’t available when needed, you might miss out on a lucrative opportunity!