What To Look For In Industrial and Residential Vacancy Land
In today’s real estate market, investing in property has never been more affordable than it is today. The days of owning a dilapidated property are over for good. A comprehensive property management plan can help you avoid costly mistakes and manage your property so you earn maximum returns while spending on what you need most – quality amenities for your tenants. If you’ve been thinking about improving your property for property value appreciation, you’ve made the right decision. Now is the time to consider industrial improvement to boost your bottom line.
How do I determine the type of improvement I need? Property managers typically use two types of assessments to determine value: historical and implied property values. Based on historical values, a property is considered “vacant” if it hasn’t been occupied for at least three years. In this case, the property is placed on the vacant property list of the local MLS. Investors usually prefer to buy vacant land rather than investing in multiple units that have already been sold because they can get many years of high return investment out of a single property.
Historical values are based on the current condition of the vacant land. Investors don’t want to invest in vacant land because it costs them money to keep it unoccupied. Vacant land doesn’t sell for much, and the cost of maintenance can drive the cost of operating into the business owner’s pocketbook unless there are industrial regulations governing the use of the land. Investors also look at the historical value of nearby properties to see if they will match or exceed the retail value of vacant land. High growth areas always have higher retail prices but that may change in a few years so you’ll want to stay on top of the market to be on top of your game.
Industrial zoning codes can vary greatly depending on the industry it is in. Investors must read over the regulations carefully before investing in any type of property because different industries have different requirements for operating. If the property is an oil refinery, then it’s clear that it has to be fully functional for processing and gathering oil. Refineries don’t want to have too much debris on their property or have plants or other equipment leaking chemicals onto the land. Properties that have been zoned as residential may have industrial facilities but they aren’t allowed to have residences on them.
Some cities have a problem with some residential zoning ordinances that restrict how large a parcel of residential land can be. For instance, some cities don’t allow for very large lots or homes but may allow very large industrial facilities. Investors are going to have to be very careful that they don’t invest in industrial properties that may be too big for the neighborhood. If the property is zoned residential but contains too many industrial equipment, then the revenue stream for the city will suffer. This means that the city will lose money from not allowing people to live in the neighborhood.
Another concern is that residential land is usually easy to lease up and doesn’t require a lot of money up-front. This means that investors will be able to make more money in a shorter period of time by leasing up the property and starting a business on it. However, this doesn’t mean that there is no longer some form of oversight for a vacant land purchase. If the new owner is sloppy with the property and fails to keep up on permits or grass seed applications, then the city can begin legal proceedings against them. They can also begin to ticket and fine the property owner.
This doesn’t mean that residential and industrial properties don’t have to be maintained in order to prevent legal problems. There are ways to make improvements to improve the land. Improvements include installing roads, fencing and trees. If the property owner is diligent about making sure that the improvements are done properly, then they won’t have to worry about having to deal with any legal issues.
When buying vacant commercial and industrial land, the buyer should consider all of their options and then determine the type of property that will work best for them. They should learn about the different types of occupancy that exist in most areas. They should also look into what the tax incentives are for that piece of land. They can also look into purchasing a piece of property for as long as it is fit for purpose and has the proper zoning that they desire.