It’s a hot topic in today’s current event news, but it’s also something that many investors fear. Acquiring an investment land is not without its considerations, and it may not always be the right decision for you. Below are fifty-five things to understand before investing inland, in no particular order.
When buying land, location matters as much as when purchasing a home. However, the critical aspect isn’t necessarily a neighbouring school system or how close you are to a public park—it has more to do with the location of the land itself.
If you want to build and live on the property, you should consider what kind of access you will have. Is this a secluded plot that can only access via a dirt road? If so, can you build something during the winter? Will city utilities reach your address?
2. Title Search
The next important step that must be done is a title search. A title search will tell you more about the property’s history, if there are any outstanding liens or mortgages on the property, and so on. If there are any red flags from your title search, you must have your attorney sort them out before investing inland.
3. Deed Type
As far as potential deeds go, you’ll probably want to stay away from a life estate deed as far as alleged acts go unless you’re in your 90s and need extra protection against predatory heirs. On the other hand, a quitclaim deed is a great option if you’re doing any property transaction with family members related by blood or marriage.
4. Is the Land Tax Exempt?
Once you’ve purchased the land, you will be required to pay taxes based on your holdings’ value. While there are no blanket exemptions from property taxes, your property may qualify for a reduced rate in some cases. If this is the case, you should note an expiration date on such agreements, so don’t get caught off guard when tax time rolls around.
5. Soil Quality
As you’re looking through properties, you should consider the soil quality. You can get a soil report from a local lab for about $100, and it will tell you more than you ever wanted to know about your potential land. The information will tell you the pH of the soil, if there are any toxic chemicals in the earth, how many nutrients are in the ground, what kind of nutrients are needed to make it fertile, and what heavy metals are in the soil.
Real estate is an excellent investment, and there is a lot of money to make. Before investing inland, it’s essential to be prepared. You need to know what you’re doing, understand your risk levels, and have a business-like mindset. If you’re not ready, you’ll lose money. But if you have the correct information and knowledge, you can make good money from real estate investing. Stefan Soloviev offers more insight into how he does his real estate business.