From the video
Are you thinking about buying vacant land? It can be a compelling investment for some investors. If you’re thinking about it, here are 6 reasons we’re buying bare land in Arizona…
When most people think of real estate investing they think of houses… or maybe apartment buildings. But at Compass Land USA, we LOVE land. It can be a very compelling investment for many investors. Here are…
6 reasons we’re buying land in Arizona
No one is making more land! The land we have is all that’s available. This means that the supply is always dwindling but demand has never been higher… and declining supply and increasing demand help to drive the value of land investments generally upward.
It’s hard to tell from the map above, but the areas in white are privately owned. Here are some other key points:
- Tribes and reservations own about 28% of all Arizona land
- The federal government owns about 42% of all Arizona land
- About 13% of land in Arizona is owned by state trusts
This leaves only 17.6% of land in Arizona available for private ownership!
Talk about scarcity – That’s a lot of competition to get yourself some land for sale in Arizona!
In many cases, raw land can be a very affordable investment, especially when compared against a property that has a house built on it or gets city services. You might even be surprised at how low some properties can be acquired for! (If you want to see our inventory of affordable raw land, click here).
Buying land in Arizona is easy, because these properties often don’t have utilities. This helps keep land for sale in Arizona cheap and affordable.
This doesn’t mean that you won’t ever be able to get utilities to your Arizona land. A lot of counties in Arizona prefer that you have a well and septic tank, which are easy enough to source and install. You’ll often be allowed to use solar panels as well, so in a lot of areas, you won’t have to worry about bringing in power from the nearest line to your property.
Property taxes in Arizona are some of the lowest in the country, ranked 31st out of 50. You can see some average property tax values by county in the chart below.
Keep in mind also that this data includes properties with houses, so the values for bare land in Arizona are actually much lower!
At Compass Land USA we’ve bought and sold 100s of acres of land for sale in Arizona, and we’ve always found the property taxes to be really cheap. The average property tax value we’ve seen for bare land in Arizona is normally around $100/acre per year.
#3. Growth Opportunities
Raw land is perhaps the most basic real estate investment you can get. But the great thing is: even making simple improvements to the land – perhaps clearing it and mowing it – can help to increase the value of the land quickly.
Of course, it really depends on what you plan to use the property for but our point is that you can do many things to grow the value of your land.
#4. Exit Strategies
If you own a house as a real estate investment, you’re pretty much stuck with renting it out or flipping it as your only choices. But with land, you have many more exit strategies available that you might not be aware of.
Yes, you can rent it out… in many different ways (for recreation, to farmers, etc.)
You can develop it (such as subdividing it).
You can even just hold it and wait.
Or you can consider it a personal investment and enjoy the land yourself. This is the most common land use for people we sell our land for sale in Arizona to!
And there are many more options. (And you can always mix and match these strategies, too.)
For buy-and-hold investors, raw land is a very easy investment. You buy… and then do nothing!
Raw land requires little or no work or upkeep, which means you can own a whole bunch of land and never wear yourself out like you would if owned a whole bunch of houses. It’s the best!
All you have to do is pay the annual property taxes, and the county will send you a letter when taxes are due, so you don’t even have to worry about keeping track of that!
Look beyond the potential financial return on investment (ROI) and consider the “fun factor” – your own enjoyment of your land can also make it a great investment. With an investment in land, you now have a place to get away from the city, go on picnics with the family, or maybe go camping or 5th wheeling.
We love raw land as an investment and we’ve just shared 6 reasons we’re buying bare land in Arizona and think you might consider it too.
To check out our land for sale in Arizona inventory to see if there’s an investment there for you, just click here.
You can call us anytime at (313) 349-0434 to answer questions about buying land in Arizona.
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