If you’re a retired person or planning to retire soon, you’re definitely looking for new ways to supplement your income. Many people prefer to invest in rental properties in developing neighborhoods.
However, property management obligations come with this type of real estate investment, including numerous calls from irritated renters about leaking faucets and squeaking door hinges. This is why some retirees prefer to invest in undeveloped land instead.
Purchasing idle land for future profit, often known as land speculation, is a high-risk venture. The key is to discover cheap land in underdeveloped locations that are likely to have a development boom in the near future.
While picking the correct location can be difficult, if you play your cards well, you could sell your land to a commercial real estate business or developer in the future for a significant profit.
Are you considering betting on a vacant lot? Here are five states in the United States where you may buy dirt-cheap land that could pay off in the long term.
People can buy land in Tennessee, Arkansas, and West Virginia for a very low price in these three states.
New Mexico and Arizona are favorites among retirees. If you’re looking to buy land, be sure it’s near water and utilities. The most illiquid type of real estate is land.
Arkansas is known as the “Natural State” because of its plethora of outdoor recreation possibilities, which range from fishing, hunting, and hiking to mountain biking, golfing, and boating.
Mountains, dense woods, valleys, lakes, rivers, reservoirs, and streams make up the state’s diversified topography.
In addition, Arkansas offers a low cost of living, a growing economy, and a growing population.
According to US Department of Agriculture data from 2021, vacant pastureland in the Natural State sells for roughly $0.06 per square foot on average.
Nashville, the capital of this landlocked southern state, is well-known for its central location. The Grand Ole Opry, the Country Music Hall of Fame, and a legendary stretch of honky-tonks and dance halls make up the center of the country music scene.
Memphis, in southwest Tennessee, is another popular tourist destination, with visitors flocking to see Elvis Presley’s Graceland.
The Great Smoky Mountains, which run along the North Carolina border in eastern Tennessee, provide a tranquil setting for fishing, hiking, and admiring spectacular mountain views. Tennessee also has another significant advantage: there is no state income tax.
Despite its many charms, land in Tennessee is reasonably priced. For example, a 251,911 square foot property in Unicoi County, located in the state’s hilly northeast, sells for an average of $59,408.
That works out to just $0.37 per square foot. You might be able to profit from a land acquisition in Tennessee as the state continues to grow.
Arizona has long been a popular tourist destination for those looking for a taste of the southwest, thanks to its year-round sunshine and, of course, the Grand Canyon.
It’s also the country’s sixth-largest state, with a fast growing population. In comparison to many other states, Arizona’s job market is fairly strong.
Even with those figures, land in the Grand Canyon State is still reasonably priced. The average price of land in Santa Cruz County, which is located in southern Arizona near the Mexican border, is $1.77 per square foot, with an average sales price of $45,420 for 91,088 square feet.
New Mexico is known as the “Land of Enchantment” because of its diverse landscapes, which range from the Chihuahuan Desert to the Sangre de Cristo Mountains.
Santa Fe, the capital of this southwestern state, is a famous tourist destination with luxury spas, spectacular Spanish colonial architecture, and a dynamic cultural environment.
There is a Georgia O’Keeffe Museum and a Santa Fe Opera that are both in this lively city.
To top it off, the population and economy of New Mexico are also growing. To put it another way, the Land of Enchantment might be a land of opportunity for retirees looking to purchase expensive unoccupied land.
Land in New Mexico may be purchased for an average of $1,500 per acre, and the state ranks second in terms of available land, so there are plenty of chances for keen investors.
West Virginia is known as the “Mountain State” because of its location in the Appalachian area, where the topography is almost exclusively mountainous.
Harpers Ferry, at the Shenandoah River’s confluence with the Potomac, is a famous tourist site in the state’s northeast.
All around town, you can visit living-history museums. John Brown made a famous pre-Civil War raid there, and it’s where he lived and worked.
West Virginia’s economy has made great progress and continues to expand. Coal mining remains West Virginia’s largest industry, accounting for the majority of the state’s growth.
In West Virginia, you can still locate very affordable land. An acre of land can cost as much as $1,000 depending on location, and with only 7% of the state’s land developed, there is plenty of room for expansion and profit.
Even if you locate dirt-cheap land in one of these five states, keep in mind that buying land is a high-risk venture, particularly for inexperienced, short-term buyers.
It can take years to sell some land parcels since raw land is the most illiquid sort of real estate investment.
Consider the area’s growth potential as well as the zoning regulations, geography, and tax obligations before purchasing a piece of land. If you want to develop it, make sure it has water and access to utilities.