If you think of improving retirement savings, applying your funds in the right place is crucial. Many options exist, but buying properties is a safe and lucrative bet. Some people buy stocks, some pursue opportunities with cryptocurrency, and others trust real estate. It’s usual to hear XYZ purchased a vacation home or a rental apartment somewhere. But do you know buying raw land can also be a great decision in terms of investment? The good thing about these properties is that you don’t have to worry about maintenance. Plus, you can develop them into a building or housing project to sell them at a much more profitable rate in the future.
Do you have a solo401k account? This kind of retirement plan helps you utilize your money in various areas; raw land investment is just an example. To make this work for you, pay attention to a few details.
Selection of location!
While it seems like an easy decision, understanding how much you can invest and the purpose of land use plays a critical role. Choose a land parcel that satisfies your goals and is budget-friendly. Focusing on the location will help you see its value appreciate faster. Find a bigger plot and its market value. The market value of land depends on dimensions, size, zoning, and location. Accessibility, buyer interest, and others can also give you some insight. Experts say that vacant land offers you high investment security and returns. If you live in Denver, you can find raw land hassle-free. And it makes sense to consider this area for several reasons.
The unemployment rate in this area is reportedly under 3%. People from different cities and states migrate here for jobs. Some studies suggest it’s among the top 10 US cities where you get an excellent appreciation for your real estate investment.
Local codes, zoning, etc.!
Some people prefer to buy and sell their lands, while others develop them to gain more. But building a structure on a piece of land can be subject to the relevant zoning rules and codes. For example, water-facing land may require you to construct a sea wall. As a buyer, you must consider zoning to know whether those limitations support your investment dreams. Suppose you thought of using this land for raising chickens as a side hustle, but zoning laws restrict this. You will want to either explore other land options or work within limits to make the best use of what you have.
Some people advise that buying a home or building is much more convenient because you have the thing right before your eyes. With land, you need to have a vision. You may need others’ opinions and help regarding where to buy and how. Due diligence becomes an essential part of this process. If you don’t do your homework right, there can be risks. If you are wondering about funds, banks may not lend money to buy land. Instead, you can use a suitable retirement plan to make this happen. Some retirement accounts offer wide-ranging investment options. You can leverage them.