If you’re planning on buying land, it’s important you have a clear goal and a clear plan in mind. This helps with defining your buying criteria, avoiding time-wasting and emotionally draining “analysis paralysis”, and getting the property you really want.
Today I want to talk about the most common “land plan” I see most buyers have. It’s a good one, and there’s a reason it’s so common. If you’re just starting your land journey, you may have already thought about this or at least components of it. This should get you thinking about your own land plan, or at least get your creativity going.
Step 1: A Spot For Camping/RVing
You find a beautiful property with great views that you know you’ll enjoy year-after-year with friends and family, but you don’t have thousands of dollars to buy it. Nonetheless, you’re not deterred because you’re a smart land buyer and know you can buy land on monthly terms that’s much easier on your household budget.
You buy the property on terms and while you’re paying it off each month, you take your family out in the RV for the annual summer vacation. Or, you come out every few months as an escape from daily life or to enjoy a long weekend.
Step 2: Improvements
After a few years, you’ve paid off your property and now officially own it. You can now begin the process of improving the property with the goal of building a cabin or retirement home on the property. The money you had been putting towards your monthly payments are now being used to help slowly improve the property year-after-year. First, you install power, then you have a well dug, and finally you add a septic system. You’re still enjoying the property as a vacation spot, but are slowly adding value as well. Eventually, you’re ready to build your structure and retire there.
Step 3: Profit!
Your improved land is now worth much more than you purchased it for, and you have a couple of great options to choose from. You can sell it for a nice profit, or you can hand it down to your spouse, children, or grandchildren.
What’s Your “Land Plan”?
You can probably see why so many land buyers have either this exact plan, or something very close to it. It allows someone who may not have a lot of money today to acquire and enjoy land with the goal of long-term profit (or continued enjoyment!)
Of course, it’s definitely not the only land plan that’s out there. Many people buy land with less of a recreational purpose in mind, and see land more as an investment vehicle. If your goal is more short/medium-term profit, there are plenty of ways people make money with land.
So what’s your “Land Plan?” There are a number of possibilities, and once you have one in mind, it’s much easier to finally take action.