When considering land investments, the market value of raw land is found by subtracting the costs of clearing, grading (shaping), draining, and filling from the total amount the property would cost if it were developed. If you are really ambitious, you can even purchase undeveloped land in its natural state for little to no money down.
If you are thinking of purchasing land, you need to realize that while many choose to buy raw land for investment purposes or because they want a sustainable place to live, more and more people are turning toward the purchase of raw land as a business opportunity. In the end – either way – this is an excellent time to invest in what might be your last great money-making opportunity.
When determining if your land has increased in value, the best source of data is to go back 10 years, check to see what your land was worth then, and compare it to today.
What is a homestead?
A homestead is where a house or living quarters exist on a piece of land that does not have a commercial purpose. Homesteads may also be a great investment for people that are looking to escape the city life and operate on a ranch atmosphere.
Buying land can be a good investment for some people, while some choose to buy land only as a hobby. Factors that affect the value of your land include its location and 100 acres of low-value farmland in Colorado Springs is going to be cheaper than a 1-acre lot on a ski mountain in [mountain_village].
Potential for the Land
If you are ready for an investment in Colorado, then you might want to consider looking into raw land.
Searching for a high-yielding venture can be tedious and arduous, but if you are considering investing in land investment, the possibilities are endless. Raw land investments present many ways to increase your profits. Some of these include building homes or condos, commercial buildings or industrial complexes, farming, or opening campgrounds.
Investing in raw land not only requires finding an undervalued parcel of property, it also requires deep pockets when you decide to sell the finished product. Developed plots of land are likely going to command the highest returns on the market today. Keep this in mind before deciding that raw land is right for you.
Appraised vs. Assessed Value
When looking at the market value of your land, it is best to consider the change in price over the past 1-3 years which can be found on your property tax bill.
Land that has not changed ownership since its prior assessment will see little to no property tax adjustment. This provides an expected increase in value of 0% to 3%. However, this does not necessarily mean that there was no change in market conditions or demand for opportunity properties during the time the land was owned by one party. For instance, if a piece of vacant land has not changed hands for 5 plus years, its fair market value may have increased 15%, however, because it only saw an average 3% increase annually since its last sale 7 years ago you will notice but a 2% increase.
More information about the plot of land you bought in Colorado Springs:
It’s a plot of raw land on the outskirts of town – another hour from the center of Colorado Springs, but still within its limits. The plot is mostly flat with a few trees and bushes scattered around here and there, good for enjoying nature or building a cabin. It’s currently pretty isolated with few neighbors nearby, so it’ll be quiet and peaceful surrounding by nature, perfect for those who want some peace and seclusion without being too far out from civilization.
Finding the right plot of land for your plans can be difficult if you don’t know where to look. At HBR Colorado we’ve done the hard work for you and scouted out all the best locations!
Our team understands that it’s not just location, location, location – but also size, size, and size that matters when evaluating potential land investments. That is why we offer plots of land available in a variety of shapes and sizes that will suit any need! Whether it’s acreage or something more compact – whether it’s long and narrow or square – our expert team is here to help make your investment dream a reality today.
Whatever your reason for selling your land, HBR Colorado will help you sell at the right price! Working with HBR Colorado makes it easy to determine the actual value of the land. HBR Colorado has investors looking for land like yours! Call HBR Colorado at (719) 286-0053 or send us a message today!