Retiring soon, or are you a retiree? One of the things currently on your mind is how to use retirement savings to gain future income.
Although most people often choose to put their money into rental properties in developing areas, it usually comes with responsibilities that may not be suitable for a retiree. These include regular repairs and renovations and general complaints from renters, which retirees may find too bothersome. What most people want is peace of mind at the retirement stage of their lives and not endless stress.
These are some of the reasons why retirees are choosing to instead invest in vacant land. This kind of investment, also known as land speculation, involves buying cheap lands to resell later when the price shoots up. While land speculation is high-risk, investing in the right property at the right time can pay a high return on investment. You need to purchase cheap land in undeveloped areas that have a high possibility of becoming a center of development in the near future. Once you see that happening, you sell the vacant lot to a real estate developer at a price more than you originally bought it.
If you are considering to venture into real estate and investing in vacant land, here are five states in the U.S. where you can purchase cheap land and expect to reap cool dividends on your investment.
Its capital Nashville is well-known as Music City. It’s the home to the country-music scene with places such as the Grand Ole Opry, the Country Music Hall of Fame, along with a legendary stretch of honky-tonks and dance halls. In southwest Tennessee is another famous city, Memphis. The city is the home of Elvis Presley’s Graceland and Beale Street. Tennessee also boasts of the Great Smoky Mountains, other scenic natural sites, and opportunities for people who love the great outdoors.
If you are looking for cheap lands to invest in, Tennessee is the place for you, especially with the absence of income tax. You can buy a 251,911 square foot lot for $59,408 in Unicoi County at an average price of $0.37 per square foot.
Bordering the Mississippi River, the State of Arkansas is famous for its magnificent lakes, rivers, and hot springs. It also offers outdoor recreation opportunities such as hiking, fishing, golfing, and hunting. The diversity of its geography earned it the nickname the Natural State. Arkansas is the only state in the U.S. that produces diamonds.
Arkansas is one of the cheaper places to live in the U.S., and its economy is continuously growing. For $43,083, you can buy an 830,617 square foot lot in Clay County at a selling price of $0.07 per square foot.
West Virginia is best known for its mountainous landscape (it’s entirely situated within the Appalachian Mountain range), which is why it’s nicknamed the Mountain State. It’s home to several historic sites, including the first rural free delivery mail service, America’s oldest dime store, and the first brick street in the world. West Virginia was also the Battle of Philippi’s site, the first land battle of the Civil War. All these bespoke the historical relevance of the state.
The Mountain State economy is mostly based on coal mining, accounting for 98% of its growth. Despite an increase in the cost of real estate, there are still cheap lands in West Virginia. At $0.44 per acre, you can purchase a 277,623 square feet lot at $29,450. You will find such affordable land in Morgan County, a city few miles away from Harpers Ferry
The Land of Enchantment is not only known for its deserts and white dunes. It also boasts of snow-capped mountains and a vast expanse of prairies. Its capital, Santa Fe, sitting at 7,199 feet above sea level, is a major tourist destination. Famous for its wine, cuisines, historical sites, the largest balloon festival, and Spanish colonial architecture. The state also served as the site of the popular TV series, Breaking Bad.
The steady rise in New Mexico’s population and economy serves as an opportunity for retirees to invest in real estate in the state and reap the rewards in the near future. For $55,918, you can buy valuable land in Quay County at an average price of $1.96 per square foot.
The home of the Grand Canyon and the sixth largest state in America, Arizona is a haven for retirees with its iconic scenery, breath-taking natural sites, and pleasant sunny weather all year round.
Even though Arizona is one of the expensive states to live in the U.S. due to its healthy job market, there are several cheap lands spread across the state. At an average cost of $45,420, you can buy a 91,088 square feet plot in southern Arizona, close to Mexico’s border.
The Bottom Line
Finding and buying the cheap vacant lot is only the first part. Now, you need to patiently wait for the real estate value in that area to rise. This part may be difficult for people looking to gain quick profit, which is why land speculation is best left for individuals in it for the long-run. You need to be willing to play the long game.
Remember to do proper research before purchasing any piece of land. Make research into the area’s growth expectancy, topography, zoning requirements, access to utilities and water, and tax. Don’t buy land without doing any of these.