Why is Buying Land a Good Investment?

Investing in and purchasing land can be a difficult concept to understand. Most people have never given much thought to this concept. You might be wondering, "Is buying land a good investment?"

People aren't always willing to think outside the box with their money. You don’t always need to follow the lead of tv personalities, flipping houses, and doing outrageous home renovations. They make it look so easy, but no one is really talking about why land is a great investment.

Let’s go over some reasons why land is a wise investment!

Land Provides a Sense of Security

Land in its natural condition will always be valuable! There really is no extra effort required of you when owning a piece of land. Think of it this way, there is no renovating for you to do, no maintenance for you to take care of, you just own it.

The key to investing in land is to buy a property that can be improved one day. Whether you are holding onto the land for yourself, plan to pass it down to your family, or plan to sell in the future, it is a good idea for the land to be suitable for building on. 

Land is a Limited Resource

Land is a valuable and limited resource. There is no endless supply of land, and no one is making any more of it! As the population of the USA grows, the cost of land and availability of land will increase as well. 

Land is Tangible

No matter what the world decides about money tomorrow, land will continue to have value. Unlike stocks and shares, land doesn't disappear. 

Land is a tangible and physical item that belongs to you, regardless of the economic climate worldwide. Although the value of money and currency may fluctuate, ownership never does.

Land Value Increases

According to the most fundamental economic principle (supply and demand), raw land will inevitably increase in value as demand for the limited asset grows. Rather than asking whether land will appreciate, the question now is how much it will appreciate.

If you do your research to make sure the land you are purchasing is in a path of growth, future developers may find it very attractive. You could eventually make some easy profit selling it way beyond what you paid for it. 

Land is Less Competitive

While most people out there invest in condos, housing units, and house flipping, it’s not as common to buy a piece of land. As we mentioned at the beginning, today's TV shows have glamourized house flipping and it seems everyone wants to try their hand at it. 

In this case, taking the road less traveled can definitely work in your favor. 

Bottom Line

You may think investing in land is only for the wealthy population, but it can really be for anyone. It can provide you with a sense of security, it is a limited resource, it is tangible, its value increases over time, and it is a less competitive route to take. 

At 316 Realty Group, we are more than happy to assist you in finding land on any budget. If you want to learn more about buying land for yourself or simply for investment, contact us today! We would love to help you.


First-Time Home Buyers & Rising Inflation

If you're like many first-time home buyers in the United States, you're probably worried about what inflation means for you. How do you know how this will affect the purchase of a new home? It doesn’t really help morale when you hear the latest statistics about inflation. In April 2022, inflation accelerated by 8.3% more than in April 2021, keeping inflation near 40-year highs! 

In today’s blog, we will go over what inflation means for you, so you can better understand this concept, and move on with finding your first home. Let’s get started!

Inflation, in Plain Terms

Let’s first go over what inflation is. Inflation is the process in which prices increase over time. In other words, your money right now is worth less than when you first possessed it.

As consumers, we don’t like to witness inflation, but if you look at the big picture, some inflation can be a good thing. A healthy economy should always have some inflation, as rising prices encourage people to buy goods, houses, services, and more, instead of waiting until later. This results in more work that is available for producers, which means they can continue to hire. 

Inflation can be good if occurring slowly, and not too quickly. For example, think about your favorite coffee shop, that latte you pay $3.50 for suddenly jumps to $6. That would be a shock, to say the least!

Housing Impact

Inflation impacts housing prices simply because the price of materials used for the construction of homes goes up. 

Home appreciation is impacted because homes go through price increases, due to many variables. Such variables include the home’s condition, number of bedrooms/bathrooms, location, and condition. 

Home Buying Impact

As a first-time home buyer, you’re curious about what impact inflation could have on you buying your first home. Due to the nature of inflation, the prices of homes will continue to climb for a while. Mortgage interest rates will rise, which means taking out a loan will become more expensive as a higher interest rate leads to higher monthly payments. 

What to Do in This Market?

You're wondering what you should be doing as a first-time home buyer in this housing market. First, it’s s a smart move to pay off any existing debts, in order to have a better DTI (debt-to-income ratio.) This is an important factor a lender will look over when deciding to approve you for a loan. Make sure to avoid opening any new credit card accounts or making any big new purchases, this could harm your credit greatly. 

Be Honest With Yourself

As a first-time home buyer, and especially in the current market, your budget won’t be able to fit everything you want in your home. Make a list of what your home absolutely must have and cannot do without. 

Talk to your real estate agent about these aspects and don’t forget about fees and any funds you need to be aware of and may need to bring to closing.

Closing Up

This market may be intimidating for first-time buyers, and it may feel like you could be locked out of the market. High rates are combined with high home prices, and affordability is being pushed farther away right before us. If you have the means financially, you may want to start the search now and make a move. Contact our team at 316 Realty Group so we can guide you through the process of buying your first home, we promise you don’t want to do this alone!


Tips for Finding the Perfect Neighborhood

So many of us have done it. You are browsing through homes for sale online and one catches your eye. You fall in love instantly and immediately begin to envision yourself there. That’s it, this house must be yours!

You arrive to view the home, only to find there are homes around you that look like they’re running a junkyard, the road isn’t as calm and tucked away as you’d like it to be, and there is a lot of through traffic that makes you uncomfortable, especially having little children.

With all of that being said, if you're thinking about buying a home, keep in mind that you're also investing in the neighborhood. You’ll never love your house and want to stay if you don’t also love your neighborhood.

That’s why we’re going to share tips and tricks on how to scope out and be your own detective when it comes to finding the perfect neighborhood for you!

Drive Around & Do Your Homework

One of the most effective ways to get a feel for what a neighborhood is really like is to go drive or walk around it at different times of the day. Take mental notes on what you see while scoping out the area!

Interaction With Neighbors

When walking or driving through a potential neighborhood, it’s important to be aware of any people that approach you and make eye contact with you, which could be a sign of a friendly community. Tools like Realtor.com also showcase which communities have good schools, and more data that reflect a great community and surrounding area.

Observing Surrounding Area

Check for any abandoned buildings or vacant lots, which could be used in the future for commercial development and could definitely impact the feeling in the neighborhood and impact the value of the surrounding properties. Look at the average property taxes for that specific area over a span of several years, and note any fluctuation. You could also dive deeper by contacting local resources like a city hall or Chamber of Commerce to find out about any future plans for the area such as building more homes (if a new development) that may change the feeling of the neighborhood, increase traffic, and in return, increase taxes.

Observe the conditions of the houses, yards, and streets. Look for any signs of vandalism or other deterrents like bars on windows. Especially if you have children, do your research on crime statistics in your neighborhood, whether it’s online (which can be limited,) or by calling the local police department. Lastly, don’t forget to observe traffic speeds too, and the noise level and traffic flow of the street. 

Can it Meet Your Family’s Needs?

When searching for the perfect neighborhood, it is also vital to consider your needs and your family’s. Only you know your and your family’s needs, and you must keep in mind what makes a neighborhood special to you, and what makes it a place you would want to grow and rest in! Questions you could ask yourself are:

  • Are you in pretty close proximity to grocery stores, shops, or restaurants?
  • Is the commute time to your place of work reasonable? (Distance and time both matter! Try doing a test run and seeing how long it would take you at peak times.)
  • Are there any nearby parks or activities for yourself and your children? (Bike paths, hiking trails, playgrounds, state of national parks.)
  • If using a school, is it a reasonable distance from the home? 
  • Are there many trees for shade and coziness, or sidewalks for easy strolls and bike rides? 
  • Is it an older neighborhood with variety and character, or a newer development with a lot more homes and less space and privacy between houses?

Let’s Get Searching!

Our realtors with 316 Realty Group are focused on our client's needs and understand the concern about finding the perfect neighborhood that fits your family. With local insight and knowledge of the area, we are here for you to guide you through the process of searching and finding a home and neighborhood that checks off all of your boxes. Reach out to us today and let’s begin the search together!