Is Buying Land a Good Investment?
The number one reason to buy land as an investment is that it doesn’t depreciate over time. Land holds a timeless value because there is a limited supply. This upward trend in land value is caused by growing populations and the demand for space.
Investors can mitigate risk and optimize returns by incorporating land into a diversified portfolio. Land investments offer a valuable hedge against economic uncertainties and market fluctuations.
As a tangible asset, land provides a sense of security and is devoid of the maintenance costs. Land ownership also entails lower taxes and minimal upkeep expenses compared to other real estate assets, making it an attractive option for investors seeking stable returns with reduced day-to-day involvement.
Why Tennessee is a great place to buy land
The state of Tennessee has diverse landscapes, from rolling hills to lush forests and gorgeous creeks and rivers. It truly is a nature lovers paradise. Many people visit the Great Smoky Mountains National Park for Dollywood, hiking and the mountain town charm. Other areas of the state offer similarly impressive outdoor activities. Big South Fork on the Kentucky border is a vast park with hiking trails, horse back riding and great kayaking. The southern part of the state also has lots of great options near the Chattanooga area.
Tennessee is one of the few states where you can buy cheap land and build a sustainable lifestyle. With the low cost of living and access to many amenities it is a top choice for many people looking to live off the grid or in a peaceful wooded setting. Water is abundant in Tennessee, so there will always be wildlife and great options for hunting and fishing.
Affordable Prices and Investment Potential
Lots of buyers are looking to take advantage of the affordable prices of rural land in Tennessee, with most parcels of land going for between $15,000 and $100,000. Compared to other states, this cost provides a tremendous value to potential investors. Remember that it is prudent to invest in a property that aligns with your vision and needs, with potential for long-term appreciation in value. The state’s growing economy and tourism industry makes it a highly attractive destination for investors from all over the world. Although many of them are targeting the largest areas like Nashville, there is a huge potential for buying rural property in the state.
What is the Right Area for Rural Land Investment?
Tennessee is the tri-star state, which is derived from the 3 regions of Tennessee. East Tennessee, Middle Tennessee, and West Tennessee are the regions of the state. Each region has a major city: Knoxville, Nashville and Memphis. Many buyers will want to have land that is within 1-2 hours of one of these major cities. This way they can appreciate the peace and quiet of living in the country but with easy access to city amenities, healthcare and airports.
Some investors will want to explore more niche markets, buying land that is in close proximity to attractions. A solid investment strategy is to buy land in areas where there is little development but lots of natural resources. Identifying features such as the best rivers for fishing and kayaking, or the top parks for hiking can be a good way to establish parameters for land investment. Whether someone is visiting for a weekend or looking to build a long term residence, everyone wants to have easy access to Tennessee’s natural beauty and resources.
Factors to Consider: Accessibility, Zoning, and Environmental Concerns
Consider factors influencing land value, including location, wildlife population, soil type, topography, and timber value. The most interesting factor when buying land will be the restrictions. These vary widely as established neighborhoods may require a 2000 sq foot house, while some areas are completely unrestricted meaning that you can build anything at any size you want. Other important considerations are a perc test for a septic system and access to electricity. If a survey has not yet been completed for the land you are interested in, you can make that part of the purchase agreement. Many buyers will be working with an agent, but since buying land is much less complex than buying a house its possible to buy land directly without having a buyers agent. Just remember to do your research and bring an expert in if you don’t feel comfortable.
Recreational Land for Hunting and Outdoor Activities
Explore properties with direct access to hunting forests and lakes. These areas can be a great investment for recreational hunting and angling. Other land is more suitable for harvesting and growing timber, or perhaps cattle farming or other industrial land uses. One of the recent trends we have seen in Tennessee is the development of rural land for rental properties. Some developers prefer to invest in untouched land and build tiny houses, cabins or other rental properties so they can generate income over time while their land continues to appreciate in value.
Farm and Agricultural Land for Sale
Tennessee is an agricultural safe haven, with over 41% of its farmland dedicated to farming and ranching. The state has fertile soil and diverse landscapes, making it an attractive destination for farmers and ranchers.
Understanding the Market and Trends
It’s important to due your own due diligence to get answers to your questions about investing in land in Tennessee, including property types, prices, and more. Serious investors or people looking to relocate should plan a trip to the Volunteer state and explore the state’s growing economy and tourism industry. People who visit for the first time often discover the unique charm and characteristics of each region. After you’ve explored and done some research it will be a lot easier to identify the perfect property that fits your lifestyle.
Financing Options and Tax Benefits
Explore financing options for rural land in Tennessee, including land lenders and closing attorneys. In some cases the land may be cheap enough that you can close a cash deal which is always preferred. Understand the tax benefits of owning rural land in Tennessee, including potential deductions and credits. You may also want to work with a trusted expert to navigate the financial aspects of rural land ownership.
The best Websites for buying land in Tennessee
There are many real estate websites and apps that list homes and land for sale. However, when buying land it is best to use a service that focuses specifically on that niche. Below are some of our favorite websites and resources for buying land.
Landwatch Tennessee Land – This website is a great resource for finding land. This link takes you to the state of Tennessee, and using their filters you can sort by price or most recently listed etc.
Landflip Tennessee Land – Similar to landwatch, Landflip specializes in land listings. They have fewer listings, but you can find listings that don’t appear elsewhere.
Whitetail Properties Land – This website lists hunting land. Land listed here may or may not appear on other real estate websites, so this resource can be a good way to find under the radar listings.