Have you been thinking about buying raw land? You're not alone, in fact you're pretty late to the game and have some catching up to do. Prices have skyrocketed off the lows, interested is peaked and it's rate of appreciation is showing no signs of stopping. Especially in the United States due to the relaxed international purchase laws. People from all over the world are buying land in America. Not only does it put them in a more stable economy, diversify their currency options but they also understand the importance and scarcity of raw land. Raw land can be a goldmine if you know what to look for. Whether you're dreaming of building a tiny home, starting a farm, or just investing for the future. Also, important to note, even something remote, without utilities, dirt roads and just overall not what you'd expect to be desirable can turn to a top investment. It all depends on your goals, creativity and what you can do with this blank canvas we call land. But there are certain things that make a piece of raw land a traditional time tested prime investment. Here are five signs of prime raw land that you’ve stumbled upon.
1. It’s in the Right Location
Location is everything in real estate, and raw land is no different. If your land is located in or near a growing area, like up-and-coming towns, cities with expanding suburbs, or places where people love to vacation, then you’re looking at something special. Proximity to amenities like highways, schools, shopping centers, or even popular recreational spots like lakes and hiking trails can drive up the land’s value. And if it’s near infrastructure projects like new roads, utilities, or public transportation, the value could skyrocket as those developments take shape. Think about Las Vegas in the 70s, people bought out desert middle of no where land without roads something like 30 minutes away from the strip. Well, while it may have taken a while, Vegas blossomed and those lots are now surrounded by shops, homes and other projects. The cheapest one if you're lucky now, is a small lot for around $250k. Any guess what those people paid in 1970 for some desert remote land that far away from the strip? In most cases even for large acreage around $5k to $10k at most. Thus, those that hold are rich from dirt.
If the land is in a rural area, consider its potential for future residential or commercial development as the city or town grows. People are always looking for a quiet spot to escape to, but still want to be close enough to enjoy the conveniences of modern life.
2. Zoning: Can You Do What You Want With It
Before you get too excited, make sure you can actually do what you want with the land. Zoning laws are a big deal. Prime land usually has flexible zoning, meaning it can be used for various purposes like building a house, starting a farm, or even developing a small business. Even if it’s currently zoned for one thing, the area may be up for rezoning as demand for property grows. And at times, you can petition the property for rezoning as well.
If the land is zoned agricultural, you could try farming or starting a small homestead. If it's residential or commercial, think about whether it could be developed into a small neighborhood or retail space in the future. Sometimes, zoning changes can add huge value to land if the area undergoes a rapid transformation. This is where holding land long term can be the biggest return imaginable.
3. Natural Resources and Utilities
Does your raw land come with hidden treasures? No, not gold (probably), but things like timber, minerals, or even water sources like streams or ponds. These can all add serious value. For instance, timber-rich land could be sold for wood or used for a sustainable logging operation. There's a few people who make a super good living buying land, selling the lumber for huge profit and then selling the land at way more than they bought it for because now the land is cleared.
But let’s not forget about the basics, can you hook up to electricity, water, and sewage, or will you need to foot the bill for bringing those services in. If utilities aren’t already in place, you could look into adding solar panels or wind turbines for off grid living or sustainability. Off grid living is extremely popular now, you can have just about everything living off the grid with advancements in solar, satellite internet and deliveries to remote areas.
A lot of the times if you buy some remote land and hold it, if the area develops and the city expands the power and water system. The gain in value on that land can be very significant.
4. The Right Soil
If you’re thinking about farming or building, the land’s soil and terrain are essential. Flat, fertile land is usually prime for agriculture or easy construction, while rocky, uneven land might require some serious leveling before you can do anything. Soil tests will tell you what crops (if any) the land can support and give you a better idea of how much money you’ll need to invest in prepping the land. Farm land has its tricks, some land has government farming funds you can get and others it isn't possible. So there's a lot to learn if you plan on getting into farm land. The soil and uses will become a big part of the quality of your investment.
Sometimes, soil that looks bad on the surface can be a hidden gem. Even rocky terrain might be perfect for certain crops or creative development.
5. The Area’s Growth Potential
If your raw land is in an area that’s seeing a steady increase in population, business, or infrastructure, you’re probably sitting on a future goldmine. Places with a growing economy, new businesses, or upcoming construction projects can drive property values up. Keep an eye on areas where things are starting to develop, like new tech hubs, transit systems, or planned residential expansions. Buy well outside the area for low cost and just hold it. If the area continues to grow toward your land, the appreciation you will get will probably surpass any other investment you had. We have all seen those lots for sale or lease within a big city, a lot of those were held in a family a long time. And, often times in the right spot they can go for millions of dollars now.
Is Raw Land Good for You.
Whether you’re in it for the long haul or looking to develop now, finding prime raw land comes down to location, zoning, natural resources, soil quality, and future growth potential. With the right piece of land, you can build, farm, or simply hold it and watch the value rise. It’s all about doing your research and finding that hidden gem. Also don't discount remote land as those are truly the hidden gems at times.
