Owning land is the new luxury for many homeowners. And buying land as an investment can be an excellent option. Whether you want to use the land yourself or resell, land is a good investment because it is a finite resource.
Unlike other real estate investments, land is typically less expensive to maintain as you don’t have to worry about repairs like replacing a roof, furnace or a leaky hot water heater. Land can be a great option for investors approaching retirement since it is an asset with little maintenance and significant tax benefits.
First, when looking for Oklahoma land for sale you need to determine the goal of your investment.
- Buy and hold the land: Many people buy land as an investment to hold onto for a period of time before selling it once it reaches a desired appreciation point. It’s also common to use the land for personal use like hunting, fishing or horseback riding while allowing appreciation of the land.
- Land flipping: The goal of this investment strategy is to buy low and sell high in a relatively short period of time with little to no additional work on the land. Some investors purchase a large plot and divide it up and resell for a profit. This option is typically the quickest, but it is still dependent on an increase in value to some degree from the time of purchase.
- Develop the land: Developing the land is a great way to increase the value, but this strategy takes longer and requires a larger overall investment. Developed land can be used for residential use such as building a single or multi-family home. Building a personal home or cabin on the site to use as a primary or secondary residence is an option or buying land for commercial development such as office or retail space, parking lot, farm, ranch, or income producing use. Some land may have initial development and you want to increase its value by making additional investments.
- Land Lease: Just like a building, land can be leased. Some people look for land that they can buy and rent for usage. Examples of this include buying land to lease for farming, hunting, a billboard, or a mobile home park.
Should You Buy Raw or Developed Land?
When considering buying land, you will want to decide whether you want to purchase raw land or developed land. Raw land is property that has not been cultivated. There are no land improvements made to the site such as paths, clearings, or fences. Developed land has improvements such as sewers, roadways, or utilities.
Raw land is almost always less expensive than developed land. Developed land includes improvements made by the prior owner which need to be accounted for in the price. You need to decide if you prefer to make the improvements yourself and save the money upfront, or if you want to buy a developed parcel.
Buying land that has already been developed can make it easier since the prior owner likely handled zoning, accessing sewer, roadways, etc. which can be expensive and at times a hassle. However, if the land has already been developed for a certain purpose, it may be difficult to convert it to your desired usage. For example, if you buy a piece of farmland it would be difficult to convert it to a hunting area. If you want to develop the land yourself you will want to account for costs including fees, permits, building, utilities, and other considerations when evaluating the track of land.
What should you consider and watch out for when looking at Oklahoma land for sale?
Due diligence is the top priority in sizing up any property including land. Getting electricity, water and septic services to certain remote plots can be quite a challenge and if you are not aware of information prior to purchase it could be a costly mistake. There is tremendous benefit to working with an Accredited Land Consultant (ALC) to avoid common pitfalls that can lead to unexpected expenses.
Prior to purchasing a piece of land, it’s important to have a complete review of the topography, soil and drainage just to name a few. If any of these reports are not available it is strongly recommended that you order these reports to have a clear picture of the property. As a property owner, you should be aware of any conditions of the property. For example, if the property has easement that means others may be allowed to pass through your land.
If you plan to utilize land for personal use, you will want to consider available amenities such as access to water for fishing or boating or pastures for farming, camping, or horseback riding.
Common questions you should know about Oklahoma land for sale.
Before making a land purchase, make sure you have the answers to these important questions:
- Is the ground solid enough to accommodate your building plans or the plans of future builders?
- Has the property soil been tested? Is the full report available?
- Are there any environmental hazards to be aware of on the property?
- Are there wetlands or flood zones on the property?
- What are the property taxes?
- Where is there access to water? Is it well or city hookup?
- Are there utilities including electric accessible from the property?
- Does the property have access to a county-maintained road?
- Are there zoning issues, building setbacks or requirements?
- Are there any restrictions or requirements for what can be built on the land?
- Are there any mineral rights and are they sold with the property or available to purchase separately?
- Is there adequate cell phone coverage on the parcel?
If you can’t answer these questions, consider contacting an Accredited Land Consultant (ALC). ALCs are land professionals who are the most accomplished, most experienced, highest-performing land experts. Becoming an ALC requires successful completion of a rigorous education program, a proven track record of transaction performance, and a commitment to professional growth. Porches & Pastures Real Estate is proud to have an ALC on our team to help walk you through your land purchase. Contact Eric Fine to walk you through all aspects of purchasing land.
Why buy land in Oklahoma?
There’s nothing quite like an Oklahoma sunset over a beautiful stretch of land! If you’re ready to start your land search, check out these available land listings or contact our team for more information.