Investing in land can be the most rewarding and satisfying experience. Luckily, you can find plots of unimproved land available at reasonable prices all across the country. Unimproved land is characterized by the absence of amenities and utilities such as power, water, telephone service, and even roadway access. These parcels of land are large, open areas of land. Building anything on it would require time and effort, but the upside is that you can buy this type of land at a low price.
But what does unimproved land mean in terms of building opportunities and what is the best use for this type of property? Here are seven pointers to consider when you decide to use this land.
Hold and Sell the Land Later
The simplest way to utilize unimproved land is to hold on to it and sell it in the future. You can gain a significant return on investment this way, but you need to understand how land in your area appreciates first. You can also boost the property’s value by clearing it, levelling it, and preparing it for building.
Build Custom House
Almost all pieces of land have already been zoned for the purpose of building custom houses. Regardless of how small or large the house’s dimensions will be, building a custom house is the best utilization for your plot of land in times of a booming real-estate market. Of course, you could always keep the completed home for yourself. However, if you decide to sell it off, you will be pleased to know that there is high demand for custom houses and little competition on the market.
Create an Investment Property to Rent
If your vacant land is in an area with attractions like restaurants, coffee shops, shopping, hiking trails, and parks, you can consider constructing a building to rent. The property can be a traditional family home or refer to a wide range of construction plans, such as:
- Horizontal apartments — a close cluster of professionally maintained, single-family houses.
- Duplexes
- Tiny lot homes — houses built next to each other and sharing a common wall. A small lot could range from 600 to 5,000 square feet.
Create Your Own Off-Grid Oasis
If you’re passionate about limiting your carbon impact, asserting your independence, and avoiding reliance on fossil resources, you can use your vacant land to create your own “off-grid” oasis. Since you won’t need electricity, natural gas, water, or sewer, unimproved land is perfect for this purpose. However, you’ll need your wells, septic tanks, solar and wind energy, and alternative fuel sources, so keep this in mind before starting.
Invest in Tiny House Living
Tiny house living has evolved into a real social movement. People have been increasingly moving to very small houses in an attempt to minimize their living area and learn to live with less. Because tiny houses rarely meet zoning regulations, they’re often built on a trailer. This means they aren’t permanently attached to the ground and can be moved around. A tiny house can be anywhere from 69 square feet to a few hundred square feet in size. You can opt to live in a tiny house or rent one.
Build a Pole Barn to Store Animals or Equipment
Do you know someone in need of storage space for their car, boat, or other big machinery? Maybe you know a local farmer or animal lover looking for a place to keep their horses, cows, goats, lambs, or other animals? Building a simple pole barn can serve a variety of purposes. If you live in an area where people have equipment or animals that require a place to call home during the off-season, the pole barn could help meet and even monetize that need.
Design a Community Garden
Designing a community garden is a good choice for unimproved land, especially if the property is too large for you to manage alone. First, call the proper government officials to get the all-clear. Ask your neighbours and friends afterward whether they’d like to join you in your cause. A community garden is a fantastic way to bring people together and strengthen relationships.
If you have the time and money to create your dream home or are willing to incur a short and long-term loss on a real estate investment, buying an unimproved property is good. Whatever you opt to do, make sure to have a plan in place and how you’ll finance it. You will save a lot of time and money if you have a clear vision of the land before purchasing.
Featured image credit: Shutterstock
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