Investing in Raw Land, Is it a Good Idea?

Investing in Raw Land, Is it a Good Idea?

There are many people who invest in raw land but there are also those who don’t know what they can get from such investment. The truth is that investing in raw land involves a lot of exciting benefits that will make you want to find a good property right away.


Buying raw land offers an easier and cheaper way into the real estate market. Raw land is way more affordable than land already built on. A great strategy is to purchase land today then build on it later on once you have a bigger budget. This ensures that you will not be priced out of the real estate market in the future.

Low Maintenance

Also among the benefits of buying raw land is minimal amount of maintenance required as compared to keeping an established property in great condition. There is no need for you to worry about renovations, repair work, or finding an electrician or plumber. Aside from mowing the lawn for the land to stay in reasonable state, there is not much else you have to worry about. Raw land also needs less stress and less time that make this a long term passive investment.

Greater Customization

A notable benefit of investing in raw land is that you can do anything you want with it because it is yours in the first place. Just make sure you know the limits in your council’s building and zoning codes. You can leave the land as it is or you can also build a house on it. You can construct a swimming pool at the back and add an alfresco deck. You can also have a larger house with a smaller yard. There is also the option to build a commercial property or sell the land to a developer.

Lower Costs

Investing in raw land means that your property taxes, insurance, and rates will be relatively lower compared to buying a property. When you are an investor, there is no need for you to hire a property manager who will take care of the land for you or worry about evicting or finding tenants. Since it doesn’t take lots of money to get started, most purchases for raw land are for cash. This eliminates mortgage lenders.

Lower Competition

When planning to purchase raw land, a major benefit is the lower competition you will face that lets you negotiate better deals.

Long Term Appreciation



Another thing to consider when investing in raw land is that the land often remains in the same condition when you purchased it. The erosion and weather may have an effect but after some time, raw land in general appreciates very well.

If bought properly, your land will experience a significant appreciation. It often happens when the land is located in an undesirable area but the surrounding area undergoes regeneration and becomes a more desirable place to live. It is specifically true in places pinpointed for land rezoning and major growth centers that can result to price hikes overnight.

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