While the Earth has 58 million square miles of land, not all of it is suitable to live on. There are deserts, mountains, frozen tundra, and other natural hazards that make construction difficult, to say nothing of political, economic, and basic quality of life concerns. Even when we zoom into the parts of the United States renowned for their wide-open spaces and abundant land – regions like Iowa; Nebraska; Sioux Falls, SD; and Texas – finding a suitable plot of land to build a dream home or use as an investment is far easier said than done.
That’s where Davis Custom Homes comes in. As a full-service home builder, we make it our mission to help make owning land and building a home attainable for as many clients as possible. The process of securing a land loan and looking for the right plot of land on which to build can often be a confusing process. You must consider the topography, soil composition, water runoff, and utility location – to say nothing of factors like the character of the community and where the land is located in relation to work, school, and other attractions. But as hard as finding the right plot of land might be, owning land is well worth the hassle. In fact, owning land is one of the best investments you can make – and we’re here to show you why.
Keep reading to learn more about the benefits you’ll enjoy once you have a plot of land to call your own.
Long-Term Appreciation
Land is a tangible asset that usually increases in value over time. Especially if you’re looking to build on a plot of land, there’s plenty of potential for a great return on your investment down the road. Additionally, owning land is a great way to guard against inflation. As the cost of living rises, the value of land typically follows. Finally, if contractors start to view an undeveloped plot of land as the next hot neighborhood, it can significantly increase in value.
Financial Security
Purchasing land can be a great idea for anyone looking to diversify their investments before retirement or just for long-term financial security. Land you own is very hard to take away from you. Even if some of your other investments go south, you’ll have a place to call your own or an asset you can sell to make up for shortfalls elsewhere. You can also choose to develop that land or sell it to developers to realize either short-term or long-term gains from it.
Potential for Passive Income
The land you purchase today can be used for a variety of purposes, such as farming, grazing, renewable energy, and commercial developments. None of these require nearly as much time and effort to maintain as other types of real estate investments can. This creates passive income for you. You also have the option of leasing your land to interested parties. Should your situation change, the land can be repurposed down the road as long as there aren’t any problems with zoning.
Scarcity and High Demand
As Mark Twain once said, “Buy land. They’re not making it anymore.” It’s a finite resource that can’t be mass-produced in a factory. As the population grows, there will only be more demand for land for farming, commercial purposes, and simply living. Furthermore, the value of land will not suddenly drop like the price of a share of company stock. No matter how far the value of the U.S. dollar falls, the land will still have value.
Tax Advantages
There may be some tax benefits associated with the purchase of land. These include potentially lower or deferred property taxes, exemptions from capital gains taxes depending on the type of land, and write-offs for costs related to land maintenance and improvements.
How Davis Custom Homes Can Help You
Looking for land? Our team can take care of all the legwork to help you find the perfect plot. We will perform a full assessment, find any potential areas for improvement, and determine the ideal part of the land on which to build your dream home if that’s your goal. We’ll make sure the land is zoned for residential use and evaluate the property’s accessibility. We’ll also ensure the land has access to utilities, and we’ll work to facilitate any improvements you have in mind. If you have questions about financing, we offer streamlined one-time close construction loan options that combine your construction and permanent mortgage into one single loan.
Acquiring and owning land can be very overwhelming if you’ve never done it before. So don’t go it alone. Get the help of an expert on your side. If you’re looking to buy land in Iowa; Nebraska; Sioux Falls, SD; or Houston, TX, Davis Custom Homes is the expert you want. Contact us today and let’s find the perfect plot of land for you together!