3 Tips on Picking Rural Land Investments

Investors can make a good profit from rural land investments. The trick is to  know how to pick the right land, in the right location. Your investment options vary, but typically land owners rent rural land to hunters and farmers, or they subdivide and resell land lots. Whatever option you choose for your rural land investments, you should use these tips for choosing land to maximize your profits.

1. Water

Having access to water on rural land is very attractive to buyers and renters alike. Whether it's a spring, stream, lake or creek, future buyers and renters want to be able to use water on rural land for agricultural, gardening or hunting purposes. For example, if you're looking to subdivide land to sell as individual lots, having water on the property is far more attractive to buyers, because they may want to garden or keep a small amount of livestock. Water will attract game, which will be appealing to hunters, and a farmer might want to rent your land for their animals to graze on. If you don't have water, you'll eliminate an entire market of buyers in need of land. 

2. Zoning

Try to find rural land that is the least restrictive in terms of zoning laws. Some lands are zoned for residential purposes only, and therefore, future buyers will not be allowed to keep livestock on the land. These and other restrictions narrow your choices for how you can make money from your property, as well as whom you can sell to later.

Carefully read the title as well, to make sure that there aren't restrictions as to what you can or cannot build on the property. For example, you may not be able to put a mobile home or other temporary structure on the land. This can be appealing to a family who wants to live in a mobile home while they save to build a more permanent structure in the future.

3. Acres

If you want to resell lots to home buyers, then it's important to keep in mind how they might use the land and buy enough acres to match. Families who live on rural lands often want the ability to garden and raise small animals. Even if they don't, homeowners in rural communities prefer not to be too close to their neighbors, as is the case in cities. Two acres is a good starter for families who may want to keep one cow, a horse and small livestock animals, like chickens. It's also plenty to grow a large enough garden to feed a family most of the year.

Turnover for rural land can be slow, and the best time to buy is when there's a lull in the market. However, whenever you buy land, you will get the best deals if you offer cash. This is true for home buying, but it's especially true when it comes to rural land investments. Some land deals come about primarily through word-of-mouth, and if you have cash, you can close a deal much quicker.

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