How Investing in Land Can Pay Off
When people invest in commercial real estate, they usually think of properties, such as office buildings or apartment complexes. We do sell a lot of those! But you can also invest in land — and right now is a great time to do it.
SVN | Latus has assisted people across Central PA with finding the right land. It is a smart investment and can pay off for you.
Why Invest in Land in Central PA Right Now?
While you can always build more buildings, you can’t create new land. This makes it a valuable commodity.
Right now, Central PA is experiencing a boom in development, thanks in part to its unique location. Close to Baltimore, Pittsburgh and Washington, D.C., the area attracts a rising number of residents and businesses. Cumberland County is the fastest-growing county in the state, and there’s been a huge demand for land to build new houses for the influx of population.
At the same time, many businesses want to expand operations in Central Pennsylvania. The amount of warehouse space in the area has expanded by millions of square feet in just a few years, aided by an increase in land prices in neighboring New Jersey that has made that state less desirable for companies that want to expand.
1. It Costs Less Than Other Commercial Real Estate
When you purchase land, you pay a bargain price because there’s usually little on it. There may be a cornfield or a house, of course, but there aren’t large, commercial buildings. That means you can make your investment stretch.
2. It’s a Low-Maintenance Purchase
Technically, you don’t have to do anything to your land before you sell it. But you can make some changes to add greater value to your land. Low investments will cover things such as:
· Clearing land
· Adding roads leading into the property
· Identifying where utilities are
Zoning is super important and the key to a land purchase. (Talk to Laura to get more ideas for how you can improve the land and make it more attractive to developers.)
3. It’s a Great Way to Generate a Profit
You won’t pay a lot for land, but if you buy it in the right location, you may make a nice profit when a developer decides they want to build there. Desirability is much of the battle.
4. Subdivide the Land
Selling to two people instead of one can drive up the price on your land. Since land is relatively inexpensive to own, you can wait until people are willing to pay your asking price, too. You don’t have to worry about much upkeep and can afford to be patient. You will have to mow the property, per township codes, and pay taxes and insurance.
If you are interested in learning more about purchasing land as a commercial real estate investment opportunity, SVN | Latus can help. Give our office in Camp Hill, PA, a call at 717-737-2422 to discuss your options.