Benefits Of Buying
Land
Looking for the ultimate blank canvas for your next commercial property investment? Buying land allows you to build your ideal infrastructure and shape your property to your needs. Whether you’re looking to develop untouched land or rebuild a new vision on a previously owned property, the possibilities of land ownership are as varied as the benefits it brings.
Freedom and Flexibility
When you own your land, you call the shots. You can build up or tear down without needing to conform to preexisting infrastructure that doesn’t suit your business or investment plans. As long as you adhere to zoning laws and environmental restrictions, you’re free to alter your new land to your specifications. That allows you to optimize your operations and design a structure to enhance efficiency and ROI.
Freedom and Flexibility
Freedom and Flexibility
When you own your land, you call the shots. You can build up or tear down without needing to conform to preexisting infrastructure that doesn’t suit your business or investment plans. As long as you adhere to zoning laws and environmental restrictions, you’re free to alter your new land to your specifications. That allows you to optimize your operations and design a structure to enhance efficiency and ROI.
Tax Benefits
Buying land provides a variety of tax benefits. Not only can you take annual depreciation deductions on taxes paid for your property, but the interest on your loan payments is also tax deductible. If your land is designated an Opportunity Zone, you may also be eligible for capital gains deferrals or exclusions to reinvest in other projects.
Tax Benefits
Tax Benefits
Buying land provides a variety of tax benefits. Not only can you take annual depreciation deductions on taxes paid for your property, but the interest on your loan payments is also tax deductible. If your land is designated an Opportunity Zone, you may also be eligible for capital gains deferrals or exclusions to reinvest in other projects.
Appreciating Value
Land has the potential to accrue value as time passes. When you buy land, you can create significant appreciation if you develop it for commercial use. You’ll also benefit from that increased value if you ever sell the property. Use your land as collateral to gain investment capital and hedge against inflation. Economic growth also brings higher demand for commercial space, so you can build a structure based on market demand.
Appreciating Value
Appreciating Value
Land has the potential to accrue value as time passes. When you buy land, you can create significant appreciation if you develop it for commercial use. You’ll also benefit from that increased value if you ever sell the property. Use your land as collateral to gain investment capital and hedge against inflation. Economic growth also brings higher demand for commercial space, so you can build a structure based on market demand.
Is Buying Land
A Good Investment?
Buying land gives you the freedom to shape it as you see fit. It also opens the doors for tax perks and opportunities to liquidate your assets for more than your initial investment. Raw land has minimal maintenance requirements, allowing you to establish a land bank in high-growth areas without racking up expenses. Selling and leasing commercial land is an effective way to generate passive revenue, especially in markets with increased urban expansion.
Frequently Asked
Questions
Whether you’re looking for a quick answer for more extensive insight, we have answers to common questions about commercial real estate brokerage services.
What should I consider before buying commercial land?
You’ll need to account for zoning regulations, accessibility, infrastructure, environmental restrictions and potential developments. DRK’s expert commercial real estate team can help you review and address issues that may arise when buying land.
How can I generate income from undeveloped land?
You can lease your commercial land for temporary use such as storage, signage and parking lots. Leasing to other developers is another way to generate revenue from unused land. You may also sell portions of your property if you wish.
What are the risks associated with buying commercial land?
Market fluctuations can affect land value and demand. You may face higher upfront costs when building infrastructures and developments. Environmental and legal restrictions may limit land use and the location may not be zoned for commercial use.
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