Despite multiple benefits, land real estate has been vastly overlooked. Buying a cheap mountain land for sale may not seem to be a huge value proposition if you assume that it doesn’t produce income and has no growth potential. This is a grave misconception because vacant mountain land can offer many advantages. It can create serious cash flow, offer versatility, and give you a place to build your dream home.
However, finding the right parcel is the key. The value of vacant land can vary from thousands to millions of dollars. But, you may find a low-cost investment at a lucrative location by looking at the right listings.
Here are the reasons to buy cheap mountain land:
Limited Resource
The land has been in great demand over the past years due to its limited availability. As the population grows, the demand for houses and lands also increases. But, no one can produce more land than what’s available. Hence, it can be an attractive long-term investment with the rich potential of profitability. You don’t have to worry about rehabilitating your land immediately, like a rental home or commercial building.
Limited Maintenance
If you buy raw mountain land, you have no property for maintaining and no tenants to worry about. Every month, you have to pay property taxes and keep your land secured. These are small maintenance expenses compared to a building with leaky roofs, clogged toilets, broken shingles, etc.
Low-Cost Investment
Typically, the value varies according to the location, acreage amount, and land-type. With the right broker and listing, you can find a cheap mountain land for sale at the desired location.
Some landowners are absentees by default and will have no emotional connection with the property. They may be willing to sell their land for a lower price since it is not an income source for them, or they don’t know how to optimize this property.
You can secure an incredible deal by negotiating with such sellers. And you may find a property bordering a national forest or near a river at reasonable prices up to $75,000.
You may not even need a bank loan to buy this property if you have enough savings. However, if you intend to take a land loan, be careful to read the loan terms and compare the lenders’ rates before finalizing a deal. If you wish to build a home on this land, you may look at a combined construction and loan.
Versatile Uses
Whether you envision a log cabin in the mountains or want a hunting ground to score a good game, raw mountain land can serve all purposes. Choose a large acreage at a location bordering the rivers, lakes, or highways with easy access roads. You can enjoy multiple activities, from hunting to fishing, hiking, or driving through the woods.
If your land borders a forest, you may even enjoy sightings of wildlife like deer, moose, elk, etc. from your property. You may go trout fishing in the nearby river during the fishing season or spend time on your private dock overlooking a beautiful mountain lake. Lands in Montana at an elevation of about 7500 feet also allow you to enjoy winter sports when it snows heavily.
Limited Competition
If you want to venture into the real estate business, you won’t be disappointed by investing in a cheap mountain land for sale. The competition is small in this industry. Most investors are focused on houses, commercial lots, and apartments while they fail to recognize vacant land’s growth potential. Play this to your advantage and find excellent properties at affordable prices in a prime location.
Excellent Return on Investment
Depending on the location and mode of transactions, you may make passive income on your vacant land. Work with a local broker specializing in buying and selling mountain land to make double-digit profits on your investment. You can even earn residual passive income from the property by leasing it to a local farmer or hunter.
For example, if you own 20 acres or more of mountain land, it may be a potential hunting ground. Every year, hunters lease such properties at a fair price, and you can easily cover property taxes and insurances with this money.
Another way to generate income on a mountain land is to sell a parcel with owner financing. This way, the buyer will pay land development and maintenance charges unless they repay the seller’s loan.
Once you decide to buy a mountain land, start looking at the right places to find a suitable property. Many online listing sites offer exceptional properties sorted by the different categories and prices to suit your needs and budget.
