At first glance, all land looks more or less the same here in Gulfport MS real estate. But on the contrary, land isn’t all the same, especially commercial land. There are a variety of things and factors that can make each parcel of land for sale different from the rest. With that in mind, here are several things you should know before buying commercial land.
- Local zoning and usage laws
Vacant commercial land is like a blank canvas. It’s waiting to be used and painted on. But what you do with the land depends on the local zoning and usage laws. Some plots of land are zoned specifically for residential use, while others are strictly for commercial purposes. More than that, local zoning and usage laws also determine the types of structures you can build on the land. So, before you make an offer on a lovely parcel of land, check what it’s zoned for to make sure it’s aligned with your real estate investment goals.
- Location is important
Location, location, location! It matters not just in residential real estate but in commercial land as well. Land is a limited resource, especially in developed areas, and where you buy land can impact your investment goals. If you are planning on using the property for retail development, purchase land in an area that gets plenty of traffic. Consider commercial land in up-and-coming neighborhoods as well. Look at the current development trend in your area and see where it’s going.
Remember to factor in your goal for that commercial land. It determines the ideal location for your investment. It wouldn’t make sense to purchase land meant for a secluded getaway retreat in a densely populated area, or land for agricultural purposes somewhere with hardly any water source.
- Work with a commercial land specialist
There are many real estate agents in Gulfport MS, but not all of them know a thing or two about commercial land or commercial real estate in general. It’s best to work with a specialist regardless if it’s your first time to buy commercial land or otherwise.
Some of our teammates here at Owen & Co. Real Estate are highly experienced in commercial real estate in Gulfport, MS. If you want, you can get in touch with them by sending an email to info(at)owenandco(dotted)com so you can learn more about the ins and outs of commercial land.
- Figure out your strategy
Before you purchase land, it’s important to iron out your strategy. There are several approaches to consider depending on your long-term goals. Some buy land below market value then sell it for more. Others buy land and then keep it for a considerable period of time, then sell it once the value has appreciated or the area has become more popular.
You can also develop the commercial land as per local zoning and usage laws. From there, you have the option to sell or rent it to an end-user or use the commercial development yourself as an additional source of income. Now, if the land you intend to purchase can be used for agricultural purposes, you can also buy it, cultivate it by growing crops or tending to livestock, and hold on to it.
- Raw land will not generate income
If your strategy for your commercial land is to buy and hold it for some time, remember that it’s not making you any money. It’s just sitting there, empty. And while it won’t require much maintenance, there will be some expenses. If you took out a loan to purchase the commercial land, you will have to take care of the monthly payments. More importantly, there will be taxes to pay unless you are eligible for tax exemptions.
That said, land can make you money, just not instantly. If the market conditions are favorable, the value of your land might appreciate over time. Still, what goes up might come down. Taking these things into consideration, do set aside funds to cover mortgage and tax payments, as well as maintenance expenses, for the land.
Our folks here at Owen & Co. Real Estate can help you navigate commercial real estate in Gulfport, MS. Learn more about commercial land for sale in Coastal Mississippi with some of the most trusted real estate agents in Gulfport MS. Email us today at info(at)owenandco(dotted)com or connect with us through this page to get started.
