Investing in real estate is something that many people are interested in. If you don't want the hassle of purchasing a second home but you are interested in owning real estate, investing in recreational land could be a viable option.
Recreational land is land that can be used for camping, hiking, fishing, or hunting. These land parcels are typically located in picturesque and remote areas.
Buying recreational land isn't the same as investing in a residential property. Use these tips to ensure that your next recreational land purchase is a successful one.
1. Know What the Land Is Worth
Buyers can have trouble determining the actual value of recreational land. This often leads to overspending when making a purchase. It's critical that you work with an experienced land agent that can help you identify the value of any recreational land you might be interested in owning.
Land agents can research the asking price of other parcels available in the area.
A land agent can also help you estimate a property's long-term and short-term appreciation potential. This information will be critical in helping you determine how much you should be willing to pay for a parcel of recreational property.
2. Verify Accessibility to the Land
Because recreational lands are often located in remote areas, accessibility can be a concern. You should verify the accessibility of any parcel before making a purchase.
The verification process will include a physical visit to the property. This visit will allow you to determine if any roads, infrastructure, or utilities will need to be added to the property to make it functional and accessible. You will need to factor these additional costs into the equation when deciding how much you want to pay for the property.
If the parcel is located between two privately-owned pieces of land, you will need to check for easements. An easement offers you legal passage across private land in order to reach your property.
Easements don't automatically transfer with the deed to recreational land, so you will need to work with your land agent to ensure all easements necessary to access your property are included in the sale.
3. Complete Environmental Testing
Surveys and environmental testing can tell you a lot about a piece of recreational land. Your primary focus when conducting environmental testing should be on drainage and soil quality.
You don't want to invest in a recreational property that is prone to flooding. You also don't want a property whose soil is contaminated or unable to support the type of agricultural activities you want to engage in on the land in the future.
The results of environmental testing should weigh heavily on your decision when it comes to purchasing recreational land.
4. Check Zoning Restrictions
Just because recreational land is located in a remote area doesn't mean that you can do whatever you want with the property.
All land is subject to zoning rules and regulations. You must check these rules and regulations before making an offer on a recreational property to verify that you can use the land how you want in the future.
Many recreational parcels will have zoning restrictions that limit the size of a home that can be constructed on the property. Some parcels may even prohibit the construction of a permanent residence.
Your land agent can help you research all pertinent zoning rules and regulations so that you don't face any unpleasant surprises when trying to use and develop your recreational land over time.
You must exercise caution when investing in recreational land. Take the time to do your research when it comes to property value, accessibility, environmental resources, and zoning before you make an offer on a recreational parcel in the future.
Contact a real estate agent to begin looking at recreational land for sale.Share