Benefits of Buying Land for Real Estate vs an Existing Building


3 Benefits of Buying Land for Real Estate Rather Than an Existing Building

If you need to buy a new home or business space, you’ve likely been checking Zillow for months, contacting agents, and looking for deals. Buying existing real estate is a great move for many buyers. Depending on your regional market and your own savvy, you may be able to find incredible deals which are perfectly suited to your needs. In other cases, however, “used” buildings aren’t going to work. There are countless reasons why this might be the case. Perhaps the regulatory standards of previous decades don’t work for you, or the people who would use the structure. Maybe you can’t find the kind of home you need in the area where you want to live. Whatever the case, there are many potential benefits of buying land and building your own home.

  • You Get Exactly What You Want. New homes and business spaces can be constructed for affordable prices, especially if you have experience in new construction. Depending on the regulatory environment in the area where you live, you may be able to build a new home very affordably, giving you the freedom to add all the design choices that you have always wanted. Do you want an open concept? Build it. Do you want a reading turret? Build it. Many homes are constructed for the average person. While they may be complete in the conventional sense, they might not provide the sexy detailing you’re looking for. Why settle? Build what you’re looking for.
  • You Can Do it Affordably, In Some Places. Of course, you’re not going to be able to buy a lot and construct in the middle of a major city unless you’ve got some seriously deep pockets. But if you’re willing to build a little farther away from the center of the population, you can do so for not much money at all. Believe it or not, you can still find affordable land in Florida. If you can be flexible when it comes to location, you might be amazed at how little money it costs to build exactly what you want.
  • You Can Build Crazy Equity. While not everybody will be in a position to think this way if you can be an early builder in an area that is taking off, your new home or business space could double or triple in value (or more), as the land around your new structure is also developed. Don’t play this game unless you are certain that it’s a good idea. But for people who have some savvy in the way real estate development patterns occur, this can be an incredible way to invest in new construction, while being sure that it will pay off in a big way over the long term.

Building a new home or business space isn’t for everybody. But if you’re willing to play a little more intensely, you can create a unique space all your own, which will act as a powerful asset for you and your family for many years to come. Do your homework and see what’s possible!

Photo Source

Jeremy Biberdorf

About the Author:

Jeremy Biberdorf is the founder of Good Credit Info. After working many years in the website marketing industry, he decided to take on blogging full time and also get his finances headed in the right direction. He has been blogging at ModestMoney since 2012. Also check out his contributions to Equities.com and Benzinga.

5 thoughts on “Benefits of Buying Land for Real Estate vs an Existing Building”

  1. Avatar for Laurie

    My husband and I want to purchase a home in the next year or so. I have lately begun the thought about purchasing land and building on it instead, this way we could get the privacy that we desire. We like having space and nature, so I think it may be the way to go compared to subdivision living – I just need to do a bit more research first. Great information, thanks for sharing!

  2. Avatar for Kendall Ryder

    I love that in some states, the price of land is so cheap! That way, you can get a piece of property and build your home on it. You get to choose where you want the home to sit on the property, and everything is more to your liking!

  3. Avatar for Brian

    If you know what you’re doing, buying land can be so much more rewarding than just buying a house. You really can get exactly what you want out of it. Thanks for sharing!

  4. Avatar for Braden Bills

    I was considering investing in a home, but it seems like getting a piece of land would be a better idea. If I have a good plot then I could have a home constructed there and end up making a much larger profit! I’ll make sure that I find a nice place that doesn’t have land that’s too expensive.

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