Posted: Tuesday, December 05, 2023
Author: Vinny Delgado, Partner, Ranch Sales | Licensed in MT
Dear Vinny,
I'm currently in the market to purchase a piece of land primarily for investment purposes. My intent is not to immediately utilize the land for agricultural activities, such as farming or ranching, nor do I foresee frequent personal recreational use in the near future. Given my objective of securing a property that not only maintains but potentially increases in value over time, could you please outline the top three most important factors that I should consider when purchasing land?
Dear Investment,
In theory, any real estate investment is supposed to hold its value and appreciate over time, but some factors can help guide an investor to a sound investment in land. Several clients will only invest in land if it has water on it. Whether it is live water, ponds, or solid irrigation rights, they feel water will always hold its value. Other opportunities include purchasing land near a growing city that can drive the price per acre up because of the scarcity of larger parcels in the area. Lastly, not overpaying is critical; research and analyze other sales in the area so you don't get caught in a situation where you must wait for the market to catch up to your purchase price.
Good luck out there!
