Buying Undeveloped Land: The Pros And Cons

Feb 25, 2024

6-minute read

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A large section of undeveloped land, potentially discussing land investments or development opportunities.

Owning a piece of undeveloped land can give you an almost endless list of possibilities for its use. But don’t start looking for the best plot of land, drawing up plans and breaking ground yet. Before you start, it’s important to know what raw (or undeveloped) land is, how you can use it and how you can purchase it. You’ll also want to weigh the pros and cons of buying undeveloped land to determine whether all of these possibilities are even worth it.

What Is Undeveloped Land?

Undeveloped land, often called raw land, is a vacant area without any public utilities, buildings or even driveways. Typically, undeveloped land is in rural areas, found off county roads and could be the place to build your dream home. It can be used for many other purposes as well, including:

  • Recreational use
  • Renting to farmers or vehicle dwellers
  • Using as storage
  • Working a side hustle
  • Using as a parking lot
  • Selling the land at the right price

Undeveloped land is often seen as having great appreciation value due to limited supply and growing demand. However, while it often appreciates in value, you may still have difficulty getting financing for the land. Before you invest, consider the pros and cons of buying undeveloped land, the costs associated with building on the land and how you’ll go about financing your purchase.

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