Building a house from scratch involves a lot of time and strategic planning.
Are you planning for some land investment with a parcel of land?
Great choice! Land investment has always been a smart choice in the real estate market as it could be put to myriad uses and guarantees a strong Return on Investment (ROI) after a few years.
Before you take the plunge and put in a hefty amount in this lucrative investment avenue overseas, particularly in America, let us understand it from its root! Read on to know why this is considered a safe and secure investment option that hardly deters in value –
Table of Contents
What Is A Parcel of Land?
Whether it is an open lot or a developed apartment on a piece of land, the resource always grows in valuation.
As a result, many real estate investors are often ready to place their bet on an open lot because of its lack of sheer availability in today’s times!
According to the definition, a parcel of land refers to an area of land that is under the ownership of a particular individual, land use or some other characteristic.
This term is commonly used in the real estate sector for a cadaster and in the process of the land registration system.
In short, a parcel of the land refers to an area which has no development on it whatsoever.
What Type of Land Parcel Costs More?
The benefits you are bound to reap from a land investment after buying a parcel of land in America are lifelong and can be attributed to a permanent source of secondary income.
The cost of land per acre depends on multiple factors which need to be taken into consideration before finalizing the deal. The different types of real estate investment you can make with hard-earned dollars are –
- Parcel of land
- Commercial real estate
- Industrial real estate
- Residential real estate
5 Variables that determine the Price of an Acre in America
The value of a parcel of land depends on its type as stated above and other numerous factors such as –
- Rural vs urban vs suburban: Denser areas typically tend to cost extravagantly per acre or square footage as compared to the same size lot on an American farmland
- Infrastructure: The lot close to the bus line or train station, water access, electric grids, internet access and sewer system can also affect the cost per acre. Moreover, the amenities like recreational spaces, shopping areas, educational institutions and hospitals play a big role in adding to its value
- Supply and Demand: Increased demand for a certain type of piece of land in real estate can impose a greater impact on its price
- Economic activity: If the area in America is a center of intense economic activity, provides ample growth opportunities and has good market conditions, then these factors could play a vital role in fixing the land price. For instance a 0.25-acre lot in San Francisco, California could be equivalent to an entire acre of a farm in Florida
- Geography: The terrain of land (rocky, flat or jagged), ease of construction and impact of natural calamities on it are important while deciding the land price per acre
Which factors decide the land price for a parcel of land in America?
The biggest benefit of buying an open space land is its demand is very high while the supply is limited. Furthermore, the value of a parcel of land has increased multifold times in the past few years and can be considered an exceptionally valuable asset in the coming years.
Here are the factors that determine the prices for a land parcel in America –
- Location: A crucial factor as the type of development in the area plays a key role in determining the price of the lot
- Demand for Land: Where the parcel of land is situated – prime location, on city outskirts or the suburbs – all this is important in estimating its value
- Topography: Factors like topography, climate, availability of basic amenities, presence of groundwater and climatic conditions have a significant impact on the land’s price
- Present and Future Land use: Permitted land use and imposed government restrictions are crucial points that aid in calculating the land’s price
- Setbacks: It determines how much of the land cannot be used in all directions for a lot from the edges. It tells the size of the land area available for construction
- Buffer: If the land has some type of water body on it, then a buffer is used. It decides how much land is around the waterbody in the property and cannot be used for construction
Parcel of Land
The fact that a parcel of land can appreciate its value over time makes it a fruitful investment. As the land price is dependent on various factors, knowing the ongoing average price per acre in the area where you are planning to buy can make a huge difference in the selection of the right lot.
To make sure you get the best lot for all the money you are willing to put in, make sure to purchase a parcel of land from a trusted real estate provider.
While buying it, the easiest way of land investment is checking available parcels of land on Landsale4U.
On this website, you will find a collection of available lots for sale in the US at affordable rates. We have up-to-date information on the lots in America that would suit your investment plans.
Do Connect with our executives and have their professional assistance in buying a parcel of land under your name!