Owning Land In Indiana: Pros & Cons | askBAMLand

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Is owning land in Indiana something you should consider? Is owning land in Indiana a good investment? This guide has the answers.

Should you consider buying and owning land in Indiana? Is owning land in Indiana an investment idea worth pursuing?

The benefits of owning land in Indiana include minimal maintenance costs, secure investment, versatile investment, and the opportunity to build the home you want. The main cons of owning land in Indiana include a lack of immediate cash flow and minimal tax benefits.

In this guide, we will take an in-depth look at the pros and cons of owning land in Indiana. So, if you are a budding or a seasoned real estate investor and you are wondering whether owning land in Indiana will be a good investment, then this guide has all the information you need.

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Indiana was mostly occupied by Native Americans like the Miami, Shawnee, Wea, Delaware, Piankashaw, Potawatomi, Chickasaw, Kickapoo, Wyandot, and Illin, just to name a few – thus its name. But by around 1800, most of the Native Americans in this state had lost their land, through illegal seizure, purchase, or treaty.

In 1816, Indiana joined the Union and in 1825, it moved its state capital to its present location – Indianapolis. Today, most of the state is composed of rural, remote land, apart from the state capital and other smaller cities like Carmel, South Bend, Evansville and Fort Wayne.

The people are friendly, the cost of living is affordable, the crime rate is relatively low, there are plenty of job opportunities and you will enjoy all seasons. So, is owning land in Indiana something you should consider? Let’s take a closer look at the pros and cons.

Pros of Owning Land in Indiana

Whether you are a budding or seasoned real estate investor, buying land in Indiana can be a great addition to your investment portfolio. With minimal maintenance costs and ease of acquisition, buying and owning land in Indiana can be a great means of acquiring high-value potential at a low price. With that said, here are some of the pros of owning land in Indiana.

Minimal Overheads

Vacant land requires minimal maintenance. While you may have to trim a tree here and there, repair the fence or remove feeds occasionally, the overall maintenance costs remain on the lower end.

When you own vacant land in Indiana, you won’t have to worry about expensive repair costs, maintenance fees, utility bills or other expenses that come with buying and owning a home. Also, since the land is vacant, vandalism issues are minimal.


Besides being cheaper to maintain, buying and owning land is an affordable investment for most people. With vacant land, you won’t have to pay heavy property taxes that come with developed land.

And once you own the land, you can then develop it later on. However, if you wait to buy and own, you may end up being priced out of the property or have to purchase it at a higher cost down the road, since its value has increased significantly.

Build the House You Want

Another benefit of owning land in Indiana is that you have the freedom to build the type of house that you desire. As long as that property has been zoned for residential use, then it gives you an empty canvas to design your dream home.

On the other hand, if you purchase a house, you will have to make some compromises in terms of the design, available features, and amenities. For instance, you may have to settle for a smaller kitchen in exchange for more bedrooms and vice versa. But when you are a landowner in Indiana, you have the freedom to build your dream home.

Secure Investment

Land remains one of the most secure forms of investment. In most cases, land appreciates with time. So, when you own a piece of land in Indiana, you can sell it later on at almost double its purchase price, or even more especially if the area suddenly becomes a hot market.

Furthermore, you don’t have to worry about deterioration or decay issues, which are associated with building. With land, you are more than assured that you will get a return on your investment.

Versatile Investment

Owning land in Indiana is a highly versatile investment, compared to a house or other similar properties. With land, you have numerous strategies that you can explore, depending on your preferences. Some of the strategies to consider include:

Buy and Sell

With this strategy, you will simply be flipping the piece of land that you own in Indiana. After purchasing the piece of land at a certain price, you can then look for a buyer, who will be willing to pay more for the piece of land. As a result, you will end up turning a profit from your piece of land via this quick sale.

Buy and Hold

In this strategy, you will buy and own land in Indiana and then hold onto it for some time. With this approach, you are working with the belief that the land you own in Indiana will appreciate – which is usually the case most of the time.

When re-selling the land, you can subdivide it into smaller lots or simply sell it the way you had purchased it. Whichever the case, you can expect to earn a considerable return on your investment with the buy and hold approach.

Buy and Farm

Indiana is one of the leading producers of soybeans and corn in the country. Hay, wheat and tomatoes are other important crops farmed in this state. Also, its soils are well drained and it has one of the highest percentages of prime farmland in the nation.

So, if you have a passion for farming, then you also have the option to farm on the piece of land that you own in Indiana. Besides crops, you can also decide to raise livestock on your land in Indiana.

Buy, Develop and Hold

In this method, you will be turning the piece of raw land that you have in Indiana into a developed property. For instance, you can decide to build residential houses, which you can then rent out to interested individuals.

Apart from rentals, you can also build a hotel, convert it into campgrounds, or build a strip mall, among other options. In short, you have numerous options to explore when it comes to developing the land. Ultimately, it will come down to the funds that you have and the zoning restrictions.

Buy, Develop and Sell

Owning land in Indiana also gives you the option of developing and selling it. In this case, you will sell the land when you have already developed it, as opposed to selling it raw.

For example, you can build rental properties, parking lots or other facilities on the property. You can then sell both the land and the properties sitting on it to an interested buyer, for a profit.

Whether you decide to subdivide the land you own in Indiana and sell off the plots separately, develop and then sell the property, farm on the land, develop and hold the property or flip it as it is, owning land in Indiana gives you plenty of investment avenues to explore.

Cons of Owning Land in Indiana

Without a doubt, owning land in Indiana remains one of the best types of investments that you can have. But like any other investment, owning land in Indiana also has a couple of drawbacks you need to be aware of before you make this move. Here are the main drawbacks to owning land in Indiana.

No Immediate Cash Flow

As much as you won’t be making mortgage payments on the piece of land that you own in Indiana, you will still have other expenses to cover. For instance, even if the land remains idle, you will still have to pay property taxes. Also, you may be required to pay association fees and cover its maintenance costs.

And since the land is not generating any income, you will need to find a means of covering these costs. To this end, you will have either to do it out of pocket or sell some pieces of the land.

Minimal Tax Benefits

Unlike developed land, the vacant land that you own in Indiana comes with minimal tax benefits. While you can apply for tax benefits after making some improvements on the land like building a newer sewer or an access road, these benefits are negligible, compared to someone with a home.

Considerations when Buying and Owning Land in Indiana

Having weighed the pros and the cons of owning land in Indiana, you may have decided to go ahead and buy a piece. But, before you rush to buy and own land in Indiana, there are a couple of factors to consider, ensuring you purchase a piece of land that suits your needs. Some of the key considerations when it comes to buying and owning land in Indiana include:

Zoning Regulations

Zoning regulations dictate how a particular piece of land should be used as well as the type of structures that can be erected on it. Also, zoning regulations may determine specific aspects of a building like the roofing type and color, shape of a building, and style of a residence.

So, if you are looking to buy and own land for development in Indiana, you should first ensure the federal, state, county and local zoning laws and regulations align with the type of development you intend to put on the property.

You also need to ensure there are no environmental restrictions that may hinder you from developing your property the way you want. Also, check and confirm that there are no environmental concerns on the property, which could pose serious health concerns, thus rendering it worthless.


Another key consideration when buying and owning land in Indiana is the availability of utilities. If you are planning to set up any type of development on the property, be it a parking facility, rentals, commercial units, or even farming, you need to make sure the piece of land that you want to own in Indiana has access to utilities.

You should confirm that it has access to key utilities like water, electricity, sewer, telephone service, TV, internet connectivity, and other key services needed for survival. If the land doesn’t have access to these vital utilities and services, installing them can be extremely expensive, thus increasing your costs for developing the land.


Whether you have plans of buying and owning land in Nevada for farming, building your dream home or putting up rental properties, you also need to make sure that the geography and soil structure of the land can support such developments.

To this end, you should first hire a surveyor, to conduct a thorough assessment of that property. While you will definitely have to spend money on this survey, it will help to determine the geology of the land.

And if the land you intend to purchase and own has serious geographical issues, you can simply move on to the next one, instead of spending thousands of dollars buying land that you will never benefit from.

Future Development Plans

You should also consider the future development plans of a certain area before you buy and own land. The future development plans in an area can increase or reduce the value of the land you own.

For instance, if you purchase land in an area that has been earmarked for building a waste facility, the value of your property will reduce significantly, once that facility has been set up. And you may be forced to sell it at a loss.

On the other hand, if you buy land in an area where a shopping center will be built in the future, the value of your property will increase significantly once the facility is up. And, you will earn considerable profits when it’s time to resell it.

Wrapping It Up

Whether you decide to build a house, farm the land or set up commercial facilities, owning land in Indiana is something you will never regret. However, make sure you pay attention to the factors we’ve discussed above when buying the land so that you can end up with a piece of land that will deliver maximum returns.


Brittany Melling

Brittany Melling

Brittany has been in the land business since 2020 when the world was starting to shut down. Since then, we’ve sold to dozens of people from ATV weekend warriors to camping enthusiasts to retired truck drivers. Our inventory spans mostly in the western United States. We’ve been trained by experience, land acquisition courses, and hundreds of hours meeting with county assessors and clerks, zoning officials, realtors, and land investors. We’ve answered hundreds of questions from people regarding the buying and use of land.

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