Land As An Investment in Georgia

Investing in land in Georgia can be a good long-term investment strategy. Land investments can provide a hedge against inflation and offer potential capital appreciation over time. Here are some factors to consider when investing in land in Georgia:

Location: Location is a key factor in the value of land. Land in desirable locations, such as near urban areas or tourist destinations, may appreciate in value more quickly than land in less desirable locations. However keep in mind that purchase price can have a big affect on how much room for appreciation you may have in the future.

Zoning and development potential: The zoning regulations and development potential of the land can also impact its value. Land that is zoned for commercial or residential use may have more potential for appreciation than land that is zoned for agricultural use. The use of rezoning potential in the future can be a great way to increase the potential value of property. We call this transitional land.

Market trends: Monitoring market trends in the real estate industry can help you identify areas where land values are expected to appreciate over time. Knowing major urban centers and expanding your search outward for future grow can be a great way to speculate on future growth.

Land use restrictions: Land use restrictions, such as conservation easements or wetlands, can impact the value of the land. It’s important to research any restrictions that may be in place before making an investment. We’ve seen dramatic value reductions in property values with certain restrictions. Permanent conservation easements have in our experience devalued a property 30%-40% from it’s peers.

Financing options: Financing options for land investments may be different from those for other types of real estate investments. It’s important to evaluate your financing options and determine the best approach for your investment strategy. In our experience interest rates and down payments are higher on land investments. Typically we see 1%-2% higher interest rate over residential and 20%-30% down payment.

Management and maintenance: Investing in land can require ongoing management and maintenance. It’s important to consider the costs associated with management and maintenance when evaluating the potential returns on investment.

Overall, investing in land in Georgia can be a good long-term investment strategy, but it’s important to carefully evaluate the factors that impact the value of the land and develop a solid investment plan. Working with professionals, such as a real estate agent/Realtor, an attorney, and an accountant, can help you make informed decisions and manage your investment over time. We at Mathis Land Group are more than happy to discuss the land buying possibilities with you.