Have you been thinking about investing in real estate in the Vero Beach, Jensen Beach, or Treasure Coast area and not sure what or where to buy? Are you unsure which type of investment, commercial building, single family home or multi family residence is best for you?
If you are investing for a safe bet for a long term, solid investment which you have almost no maintenance or expense and very low cost –you should probably investigate buying one or two small parcels of land in an area which is on an upwards trend. Raw land, which is land that has not been cleared or developed, is land which you will most likely not have to visit regularly or do landscaping on. You can simply pay the taxes, occasionally ride by and visit (or ask someone to if you are in another state), and let time do its work to increase the value of your property.
Unlike an investment like a single or multi family home where you put tenants into and collect rent –there is no checking on people or waiting for checks or doing maintenance on the outside. So if you have a limited amount of time and money to spend –raw land is the safest, easiest and most convenient option for investing in real estate. Yes, you are foregoing rental income –but you are also letting go of any headaches and potential liabilities –like expense roof repairs, insurance costs or other maintenance items. Being a landlord comes with a lot of time and work and a constant need to be available.
You can buy raw land that is zoned for either commercial or residential –but make sure to get advice from a real estate professional. Right now, I would recommend residential lots. Buy something that has a minimum size of 50′ across by 100′ deep. Most buildable lots, in most areas, require about 50 feet of frontage to build a reasonable size home. Even though you may not want to build now or ever, the next buyer will, and you need to invest in something you know you can sell later. There are several up and coming areas in Florida where you can spend less than $20,000 and have a nice parcel of land that you own outright –no mortgage, no debt, and a tangible, solid asset.
The one law of appraising in real estate is that “land never depreciates.” And so –although markets go up and down –if you are buying to hold and can wait 7 to 10 years –there are no downsides. Just make sure the land is clean –and by that –investigate if it was always raw land or if at any time there was any activity on it –including growing food, or having a store or gas station on it. Soil contamination is real. You want to go through tax records and contact the town you are buying in, and ask a few questions about the history of the site.
Some of the richest people I know are folks who quietly purchased quarter acre parcels of land over a 10 year period. It’s not glamourous –but a sure bet in almost all cases to have a physical asset to sell when you are ready for retirement.
The author is Carolyn Mac Evoy, Broker of Mac Evoy Real Estate Co., a 2nd generation real estate firm, started in NJ and continued in Florida. Should you be needing housing or commercial property or farm land in Florida, please contact her at: carolyn@macevoy.org or by calling 772.925.4791.
