Investing in quality recreational land is an excellent way to keep your cash because it can retain or appreciate over time. Unlike rental property investment with management costs and other issues, recreational land investing is less stressful since you only maintain it to the extent you want.

While recreational land can be an exciting purchase, the laws governing them differ from those of other types of land. Without a clear understanding of recreational land and what it involves, you may make costly mistakes during your purchase. This article outlines five factors to consider when buying recreational land.

1. 1. Your purpose for the land

While there are many benefits of building on recreational land, you can also use it for other purposes because it's versatile. Recreational land in an urban setting can be used as a city park, playing field, biking and hiking trail, and more. If the land is in a rural area, you can use it for hiking, camping, fishing, hunting, and more. Before deciding what to use the land for, familiarize yourself with your state's zoning laws and regulations to ensure compliance. You can work with local authorities to ensure you meet the requirements for your preferred recreational land purpose.

1. 2. Your budget

Your budget will significantly impact the land acreage and quality you can afford. It can also differ depending on location; land close to populated areas is usually more expensive than in remote areas. With some research, price comparisons, and other deciding factors, you can determine whether to pay more for recreational land nearby or invest more money and travel time for a remote land.

Assessing your finances can help you identify what you can afford while letting the numbers inform all other decisions. Don’t forget the land development costs, which may vary based on lot size, the land’s use, connection to utilities, and others. Consult a financial expert for advice depending on your unique financial condition and goals.

1. 3. Accessibility

When looking for recreational land to buy, ease of access is a crucial consideration. Know how much commuting you'll need to reach the property. If getting to your land requires traveling a long distance, you'll need a more time commitment to use it. If you can't use the land as often, then your investment would be less valuable. Recreational land that is too close to your primary residence might not be worth purchasing.

If the land you’re considering doesn’t have road access, you might have difficulties maximizing its potential. While you can add the roads, this would add to your original budget. If you can’t afford it, consider buying recreational land with access to roads to enjoy it more.

1. 4. Proximity to utilities

Since recreational land has various uses, utility sources such as telephone service, water, and electricity should be available and close to your property. While some pieces of land may already have connected utilities, others don't. Since setting them up can be costly, you want to consider your land's proximity to these necessities when buying.

1. 5. The professionals to use

Recreational land purchase processes can be complicated. While traditional real estate agents can help, they may not have the relevant experience. This is why you should work with an agent who's a recreational land expert.

Endnote

While recreational land investing can be rewarding, knowing the dos and don’ts can help ensure a successful purchase. Considering these factors when buying recreational land can help prevent potential pitfalls.