As one of COVID’s many results, the real estate market has exploded. When much of the country went into lockdown, it was obvious where the worst places to be were. Cities. New York City, Boston, Seattle and other highly populated areas were hit extremely hard by COVID and everyone that could, left the cities. This kind of lockdown and migration from cities has made people fantasize about having their own plot of land.

The Investment of Buying Land

Part of what is intriguing people to purchase plots of land rather than homes in cities or heavily populated areas were the restrictions COVID posed. Once parks and other public places were no longer available, people realized how small their living space is and it has caused people to look for land outside of these populated hubs. Buying land is always going to be a good investment. There are few cases where you won’t be able to sell your land at a lower value than you bought it for. There are a few strategies for investing in land, the first being buying land that you think will go up in value at a low price. Another great investment plan is buying and leasing the land to get a passive income. The last, of course, is the most tricky. Buying and developing the land. This can be difficult, expensive and drag on for years but this is becoming a more and more popular option for people looking to move out of the city.

The Raw Material Market Crisis

All around the world, wherever you look, raw material prices are skyrocketing. There is a serious supply chain issue, which is another result of COVID. The change in supply chains affects many different aspects of our lives including gas prices, food costs, and most importantly to land development, lumbar prices.
As a result of a few various factors such as raging forest fires, COVID-related layoffs and discontinued work at lumbar facilities, and even the high demand of new homes, the price of lumbar has reached an all-time high. It is estimated that the increased price of lumbar has raised the price of building a new home by $25,000.00. Hearing this, it may be the case that you decide now is not the best time to buy an undeveloped lot. However, the real estate market itself is absolutely exploding. With houses selling way above asking price and in record time, building your own home on an undeveloped lot may not be the worst idea.

Things to Consider When Buying Land

Now more than ever it is important to carefully weigh your options and goals when purchasing land. The first distinction you need to make is what your goals are in purchasing said plot of land. Your path forward will be different if you are buying this land as a long-term investment with no development plans than if you are purchasing with the intent to build a home on it. Regardless of your goals, you should make sure there is an area on the lot where you can build a structure. You need to make sure that the opportunity to build is there, even if you yourself don’t plan on doing so.
Other factors to keep in mind when buying land is its proximity to activities that you care about. If you are someone who cares about having access to good restaurants, shops and access to a town or city, then you need to map out the distance to these locations. If you are someone who cares most about having access to the outdoors and don’t mind driving further for groceries, gas or anything else, then you should make sure that you are in an area you can enjoy without the comfort of a town or city. Your preferences are the most important thing at the end of the day so you need to make sure you are researching the potential property thoroughly.