According to the American Society of Farm Managers and Rural Appraisers, the demand for Texas rural land has been on a significant rise the past few years, with little to no signs of it slowing down. As a potential investor, you wouldn't want to be left out if you are considering investing in land. So buying land to lease for agricultural land can be a good way to make money in the long run.
Buying land is a great way to build your investment portfolio, but it can get confusing if you're new to the real estate property market. Other than having a set budget and location, you may not be sure what else you need to know for the perfect land-investment. Therefore, knowing what to consider before investing in land can make a big difference to your wealth creation endeavor.
Here are seven essential factors to ensure a successful land purchase in Texas.
1. The Location Of The Property
When buying land for sale in Texas, location does matter. Lots in urban areas are generally desirable because of their proximity to services and amenities, such as municipal water and sewerage systems, grid-powered electricity, good roads, and internet connectivity. However, land prices are high in these areas due to the high demand.
That said, a good location can mean different things to different individuals. If you're looking to escape the hustle and bustle of city life, it makes sense to buy land in a quiet, rural area.
2. The Size Of The Land For Sale In Texas
If you intend to develop the land you want to buy, then its size matters as much as its location. If the lot size is too small, it may not have the same price growth prospects as larger properties around it. For instance, the land might not meet subdivision requirements, making you miss out on the financial benefit of selling your land in portions.
3. The Soil Type
Soil types vary from property to property. When purchasing land that you intend to develop, it's essential to determine if its soil characteristics are appropriate for the planned use. For example, hard-packed clay is not an ideal soil to build on because it expands and pushes against the foundation's wall when wet. As it dries out, it shrinks, potentially resulting in foundation shifting and damage.
Land with stable, loam soils is generally favored for building foundations, while nutrient-rich soils that drain well are ideal for agricultural applications. When searching for land for sale in Texas, make sure you choose the right soil for your intended use.
4. The Terrain Type
The terrain of the land you wish to buy can affect the complexity and cost of developing the property. Generally speaking, it's much easier and less expensive to build on a flat piece of land for sale in Texas than a sloped one.
A hillside property can provide the best views of the surrounding landscape, but it may require retaining walls to stabilize the soil and prevent erosion. Because of that, costs can add up quickly.
5. Local Building Codes
Before buying land, consider building codes and standards in that specific area. Depending on the area, there may be specific requirements that you must meet to ensure building and environmental safety.
Consult the local government to know what those building requirements are to avoid non-compliance issues when you begin developing the property.
6. Local Property Taxes
As a landowner, you will be responsible for paying taxes on the property. Before buying land for sale in Texas, consult the local government or a local real estate agent to know the land tax rates in the area. That way, property taxes don't have to become a pain once you purchase the property.
7. Climate Change Risks
As climate change continues to rear its ugly head, you want to purchase land in an area with a favorable climate. Consider the climate of the area you want to buy property to avoid climate change risks or disasters, such as wildfires and coastal flooding.
Buy Land With Confidence
Now that you understand what to look at when buying land, you can confidently embark on the process of finding the perfect property for your needs. Thankfully, you can always work with a real estate agent to ensure you're making the right investment decision.
