Which Type of Land Are You Investing In?
Whether you’ve decided to purchase a piece of land as a development opportunity or you’re investing in the future of yourself and your family, owning land is an asset that’s becoming more and more attractive. You don’t have to be an expert, but knowing the potential behind each type of land is essential when coming to a decision! While we will always recommend working with an experienced broker, such as ourselves here at Hansen Land, we want to provide you with a rundown of what types of land you could be investing in!
Probably the most straightforward when it comes to differentiating types of land, farmland is any land that has the capacity to be cultivated in some shape or form. This translates to land with soil that can be sown and is capable of producing crops. Farmland presents the most opportunities in what you can accomplish in crop production, depending on the climate and the soil. Working with a broker to dig into the history and possibility of the land can save you any holdups you might encounter in regards to mineral, timber and water legalities in correlation to your parcel. Owning farmland can be a lucrative investment, as almost 40% of Canadian farmland is leased to local farmers. Renting out your land to a young farmer could make their business, as often what stands in their way is the startup investment of buying land. If you don’t plan to farm yourself, you can help young farmers by leasing even just a portion of your land to build their future! It’s almost guaranteed that the value of your land increases as the demand for food production is always growing.
While farmland is basically a big garden, ranch land is the expansive pasture for the herd animals we raise. Where crops would have a harder time living to their full potential, ranch land is the wide open space where cattle and sheep thrive. Ranch land is common in Southern Alberta, and if animals are your calling it might be time to invest in a piece of land in the rolling foothills of our province. Leasing out your ranch land to those young ranchers is another great investment and gives them an opportunity they might not otherwise have!
If the suburban lifestyle is more your cup of tea, development land is any plot that has the potential to be developed into real estate. Whether you plan to expand the land yourself or your more interested in selling to a developer, the most important thing to keep in mind is the opportunity of the area surrounding your investment. Take into account the possibilities, such as nearby schools, shops and restaurants, transportation options, and recreation. Regardless of where you choose to purchase your development land, having the knowledge of your land broker to fall back onto could save you some headaches; development land can come with a few shocks if development permissions are not carefully understood!
Any land that you’re in the market for is investment land, but technically speaking, investment land is real estate or commercial land bought with the intention of making a return on the investment. Whether you plan to rent to a local farmer or rancher if the land or you plan on reselling to a developer with the intention of commercial, industrial or residential development, investment land offers too many opportunities to count. However you decide to use your land, careful consideration should be made to ensure the land is both viable and has the potential for development.
No matter what kind of land you choose to invest in, it’s a safe bet that working with the experts will provide you with the knowledge to wisely invest in the land that’s right for you. If adding land to your assets is something you’re ready to move forward with, give Hansen Land Co a call and we’ll steer you in the direction of your future as a landowner!