You find undeveloped parcels of property that nothing has been built on yet and wanted to invest in one. The price is dirt cheap and you are tempted to quickly put your money down on it with the hope that when the price goes up you will be able to just as quickly sell it to the next buyer. What you may not know is that buying such property comes with certain risks that will burn a hole in your pockets and stifle any further real estate moves you may need to make. Here are a few ideas on what to consider when buying into undeveloped property like raw lands.
If you happen upon undeveloped parcels among the Boston real estate for sale first check whether there are certain restrictions on what that property can be used for. You may consult local zoning laws and regulations or consult with your real estate agent for information on restrictions that may apply. One of the thing to also consider is the potential use for the property. Is it suitable for a housing development or is this farm land that cannot be converted into housing? The location of the property will also give you vital clues as to what it is good for. If it is located in an urban area which is primarily a residential location, then you should not expect your acquisition to be used for farming.
Listings of MA real estate may contain numerous undeveloped property located in areas that are right for your investment. Ensure also that the property does not require too much maintenance as this cost will erode your income flows. The property that has nothing on it does not earn income while it is idle. Instead, it may incur additional costs for maintenance and security without the benefit of an income being earned. You may also find that financial institutions and other lenders tend to treat the purchase of undeveloped property as a more risky investment when the general dearth of potential buyers is considered. Be prepared to pay much more in deposit on the property before you are able to access any loan from these institutions.
Property Leasing Renting options are also available from real estate agents and this is most appropriate for properties that have buildings or other valuable structures on them. Such properties can always be offered for rent or lease and you can collect the regular income from them. Offering raw property for rent or lease comes with certain limitations, the main one of which is that there are fewer persons or entities that would be interested in vacant properties. An obvious exception is the farmer who is the main user of undeveloped lands to whom you can offer a rent or lease agreement. You may also be able to sell the property to farmers or property developers but this again depends on where it is located. Rural areas are generally great for farming interests while urban areas may have a very significant number of developers interested in properties like yours.
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Please note the content is not intended to be, legal or investment advice. You should consult a licensed attorney or realtor for advice regarding your individual situation.