Is Raw Land a Good Investment?

___MAIN 111210888791_10153031324089015_3108316870072493101_n__MAIN 7

 

 

 

 

 

 

 

 

The distance between insanity and genius is measured only by success.

Bruce Feirstein

Land is one of the most solid investments available. It will always be worth something, and there’s little chance of it being stolen. Raw land is undeveloped property with no buildings or other structures — it is still in its natural state. If you’re thinking about investing in it, the trick isn’t so much about buying at a good price, but selling at the right time for a good profit. Investing in raw land is for people who can afford to wait years until someone comes calling for the land. It’s not a good idea for people who want to do a quick flip or need to develop an immediate income stream.

Location

Raw land values increase at a faster rate at the center of a growing city or around the perimeter of cities. But, any raw land in an area showing population growth is worth investment consideration because such growth attracts developers. The whole idea of investing in raw land is to chose property that will appreciate in value and attract a buyer who will pay more for it down the road.

Raw Land vs Developed Property

Investing in raw land is less costly than buying developed real estate in the same area simply because there are no improvements on raw land. However, banks are a bit more cautious about fronting money for raw land that is not being used for any income-producing purpose and will usually ask for a higher down payment — sometimes up to 50 percent of the land purchase. On the other hand, mortgage loans typically require a 20 percent down payment or less. Land loans also have shorter maturities — 10 to 15 years versus 30 years for mortgage loans. You can also expect to pay higher interest rates for raw land than you would for mortgages.

Timing

Economies at all levels are vulnerable to boom and bust cycles. Local economies are often tied to a major industry. The area may have a spike in population growth and lots of land and home sales for several years. Those boom years are followed by too much product on the market and a sharp decline in sales. You are more likely to make money on raw land if you buy during the bust cycles and sell during the boom cycles.

Pitfalls

Be leery of buying from owners who have held the property for only a short time, especially if the owner is a builder or developer. If they’re trying to sell fast, it likely means they have inside knowledge that the land isn’t as valuable, or won’t be as valuable, as they thought. Raise another red flag on any property priced too low for the market. That can mean the land has fallen outside the path of progress.
You also need to visit the land itself, even if it means a road trip. Never invest in raw land based solely on photos in a slick sales brochure. Do a thorough investigation and don’t allow a high-pressure salesman to rush you into a decision.

Retirement Planning

Raw land is a long term investment, For that reason, it’s a good option for people who are least 10 years away from retirement and want to diversify their assets. It’s not an ideal investment for pre-retirees who can’t hold the property long enough to reap the benefits of rising values.

SEE IT ALL:

http://budgeting.thenest.com/raw-land-good-investment-21604.html

 

  1.  
  •  
  1.  
  •  
  •  
  •  

I am actively looking to build relationships with Real Estate Investors and Owner / Users for Phoenix  –  Scottsdale   –  Tucson   –  Maricopa County  – Pima County  –  Pinal County  –  Cochise County  –  Santa Cruz County   –Yavapai County  –  Gila County   –   Arizona ,  USA   

Walter Unger CCIM –  walterunger@ccim.net   – 1-520-975-5207  –  http://walter-unger.com

 

1

Timeline of Phoenix, Arizona history

 

http://en.wikipedia.org/wiki/Timeline_of_Phoenix,_Arizona_history

  •  

2

Phoenix, Arizona

http://en.wikipedia.org/wiki/Phoenix,_Arizona

 

  •  

3

Facts of Arizona – year 1848 to 2013

http://walter-unger.com/?p=9507

Feel free to contact Walter regarding any of these stories, the current market, distressed commercial real estate opportunities and needs, your property or your Investment Needs for Comercial Properties in Phoenix.

  •  

walterunger@ccim.net

1-520-975-5207

  •  

View my listings and my profile at:

http://www.loopnet.com/profile/14101172900/Walter-Unger-CCIM/Listings/

  •  

www.Walter-Unger.com

  •  

What is a CCIM?

  •  

Join My Mailing List

  •  

Investors and owner/users need to really know the market before making a move in commercial investment properties as the market has a lot of moving parts today. What’s going on socio-economically, what’s going on demographically, what’s going on with location, with competing businesses, with public policy in general — all of these things affect the quality of your commercial properties/investment properties.  Therefore, you need a broker who understands commercial properties.  Please go to my web-site and get all the newsflashes and updates in Commercial Real Estate. 

www.walter-unger.com

 

  •  

Check out my professional profile and connect with me on LinkedIn.

http://lnkd.in/bezpJ8t

Follow me on Facebook:

http://www.facebook.com/ungerccim

  •  

Follow me on Twitter:

https://twitter.com/Walterunger

 

Follow Me on Google+

https://plus.google.com/u/0/b/114560883588623379451/

Walter Unger CCIM, CCSS, CCLS

I am a successful Commercial / Investment Real Estate Broker in Arizona now for 20 years.  I am also a commercial land specialist in Phoenix and a Landspecialist in Arizona. If you have any questions about Commercial / Investment Properties in Phoenix or Commercial /  Investment Properties in Arizona,  I will gladly sit down with you and share my expertise and my professional opinion with you. I am also in this to make money therefore it will be a win-win situation for all of us. 

Please reply by e-mail walterunger@ccim.net or call me on my cell 520-975-5207 or Office:480-948-5554

 

  •  

 

www.Walter-Unger.com

  •  

Thank You

Walter

Walter Unger CCIM

Associate Broker,  West USA Commercial Real Estate Advisers

7077 E. Marilyn Road, Bldg 4, Suite 130

Scottsdale, AZ 85254

Cell:      520-975-5207   

Office :  480-948-5554

Fax: (480-658-1172  

walterunger@ccim.net

  •  

View my listings and my profile at:

http://www.loopnet.com/Profile/14101172900/Walter-Unger-CCIM/

  •  

www.Walter-Unger.com             

a little about me and my expertise – video

  •  

commercial-investment real estate adviser-land specialist

  •  

https://www.youtube.com/watch?v=PPs3kpKR4nY

  •  

What is a CCIM?

 

Delivering the New Standard of Excellence in Commercial Real Estate 

  • Commercial Real Estate Scottsdale
  • Commercial Real Estate Phoenix
  • Commercial Real Estate Arizona
  • Commercial Investment Properties Phoenix
  • Commercial Investment Properties Scottsdale
  • Commercial Investment Properties Arizona
  • Land Specialist Arizona
  • Arizona Land Specialist
  • Land Specialist Phoenix
  • Phoenix Land Specialist
  • Land For Sale Phoenix
  • Land for sale Arizona
  • Commercial Properties For Sale Phoenix
  • Commercial Real Estate Sales Phoenix
  • Commercial Properties Phoenix
  • Commercial Properties Arizona
  • Commercial Land Specialist Phoenix
  • Commercial Land Phoenix
  • Multifamily land Phoenix
  • Retail Land Phoenix
  • Industrial Land Phoenix
  • Land Commercial Phoenix
  • Land Retail Phoenix
  • Land Industrial Phoenix
  • Land Multifamily Phoenix
  • Industrial Land for sale Phoenix
  • Land Industrial
  • P
  • Investment Real Estate

 

Disclaimer of Liability

The information in this blog-newsletter is for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.