Purchasing land in California can be an effective way to diversify your portfolio as there are several different ways that it can be used. For instance, it can be used to run a business, developed to include residential or commercial property or simply held for a period of time before being sold for a profit.
How to use land
Undeveloped land can be used for hunting, fishing or other personal uses. You may also decide to lease it to others who want to hunt, fish or otherwise enjoy nature. Alternatively, you may decide to lease the rights to the land to a company that wants to extract minerals from it or put a commercial building on the property. Finally, you can choose to build your own home on the land or take other steps to develop it in a manner that increases its value.
Potential risks of buying land
Land may be included in an area of a town or city that is specifically earmarked for commercial or residential purposes. For instance, if you buy land in a commercial zone, you won’t be able to build a home on it without permission. You may also be liable for removing radon, asbestos or other chemicals from your lot before you can build anything or use it for any type of purpose. If the previous owner of the property was engaged in land use litigation, you will inherit that case when the transaction closes.
Acquiring land has the potential to help you, your family or your business grow and thrive. Land is typically acquired in the same manner that you would buy a house or any other piece of real property. You can check with various lenders to determine your loan, down payment and other options.