Is owning land in Wisconsin an ideal investment idea? Is it a prudent and strategic decision? We have the answers.
Should you buy and own land in Wisconsin? Will it carry a high rate of return on investment (ROI)? What should you consider when purchasing and owning land in Wisconsin?
The benefits of buying and owning land in Wisconsin include low cost and maintenance, land availability and competition for land, land investment uses, and safe investment. The drawbacks of buying and owning land in Wisconsin are no instant cash flow, poor infrastructure, and low tax benefits.
This article will take an in-depth study of whether it is a strategic idea to buy and own land in Wisconsin and the pros and cons of doing this. It will also cover the factors you must consider when purchasing and owning land in Wisconsin. So, if you are planning to own land in Wisconsin but are unsure whether it will give you returns after investing, this article will guide you on these.
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Table of Contents
Wisconsin is the 20th most popular state among the 50 states in the US, where It borders Minnesota, Illinois, Iowa, and Michigan. Wisconsin has people from different cultures and races, with a population of about 5,600,000. The land is approximately 65,496 square miles making it the 23rd largest state in the US. There is balanced population growth in Wisconsin, and in 2030, there are predictions that there will be 6,400,000 people in Wisconsin.
In terms of production, Wisconsin is one of the largest milk and cheese producers in the US. Therefore, most people in Wisconsin have invested in dairy farming. It has a glaciated terrain with few hilly areas. About 15,000 lakes and rivers have navigated around Wisconsin at a distance of 21,700 kilometers. Wisconsin has the largest museum in the US, filled with nearly 30,000 arts. The museum plays a crucial role in the economy of Wisconsin because there are about 450,000 tourists who come to visit the museum every year.
The pros of owning land in Wisconsin
Depending on the type of activity you want to put your land to use, buying and owning land in Wisconsin is an ideal investment deal that will bring optimal outcomes. You have so many opportunities and uses you can utilize to bring you benefits from the land. For instance, you can buy land, develop it, and then sell it later for a profit. Here are some of the pros of buying and owning land in Wisconsin.
Low cost and maintenance of the land
The average cost of buying one acre of land in Wisconsin is around $4, 500, which, when you compare with buying land from other states, is cheap and affordable. Therefore, if you want to invest in real estate projects, purchasing and owning land in Wisconsin is the best place because the population of people continues to increase, and later on, there will be a demand for buying property for settlement and other activities.
Additionally, buying unused land in Wisconsin is cheaper than buying a property. It is because the maintenance cost is lower on vacant land than on a developed property where you may need to fix any damages and renovate the property if it's old. The benefit of buying unused land is that there is no limit on the time you want to develop it. You can begin with your own time if you have enough money to cater to the expenses.
Land investment uses and opportunities
The freedom to utilize land in whatever way you want is a right given by Wisconsin as long as you follow the rules and regulations of zoning and building codes. Some of the investment uses and opportunities you can implement on land include;
Construction of commercial or residential places
Before you build a commercial or residential property, confirm that the land is zoned for that particular activity to avoid demolishing your property. On one hand, If the land zoning is for commercial purposes only, you have the option of building food halls, shopping centers, gas stations, and parking lots that will be the source of income generation. On the other hand, if your land zoning is for residential use only, you can build property such as rentals, nursing homes, and child care facilities. In the end, you will generate income as long as you meet the demands of the Wisconsin people.
The weather and fertility of Wisconsin provide a suitable environment for farm crops such as soybeans, potatoes, corns, and ginseng powder, among others. You can also keep livestock such as dairy cattle, beef cattle, chickens, goats, and geese. Rabbits and turkeys benefit by selling their products. Agriculture plays a crucial role in the economy of Wisconsin. According to the department of agriculture and trade. Agriculture makes around $ 85 billion annually in Wisconsin. Therefore, if you consider owning land in Wisconsin and using it for farming, you will make a profit.
Land flipping can also be a prudent way to profit in Wisconsin. Land flipping is a process whereby you buy land at a lower and reasonable price and then sell it at a higher price than the buying price. The best way to maximize profits from land flipping is to sell small portions of your land rather than selling it as a whole.
If you want to retain the ownership of your land and not utilize it in any development, you can decide to lease it to lenders. The benefit of hiring the ground is that you will get income while still retaining your land ownership. However, the process of looking for a lender can be complex. Before you lease the land, ensure that you and the lender have signed a contract to avoid cases of land theft at any time.
Land investment is a strategic way of getting benefits from land in Wisconsin. It is because, at some point, the land will become limited, and the cost of the remaining land will become expensive to buy. Additionally, purchasing land is more affordable than buying a developed property. Later, the same piece of land can increase in value, and you can sell it at a higher price to make a profit.
Availability of land
According to the 2020 census, there are about 5.9 million people in Wisconsin, and the land is approximately 65,496 square miles. Therefore, land is available for sale. About 140,000 acres of land in the rural parts of Wisconsin are on sale. Therefore, when it comes to land availability, Wisconsin has it. The competition for these lands is low because most people in Wisconsin have already settled and are satisfied with their property. Therefore, you can decide to buy a large piece of land or land in different areas around Wisconsin.
The cons of owning land in Wisconsin
Buying and owning land in Wisconsin is indeed a promising investment idea. However, there are some limitations you need to be familiar with when owning land in Wisconsin. Here are some of these limitations.
In Wisconsin, the land is affordable, and this is more so if it is located in a rural area. However, access to utilities such as road, water, electricity, and other essential utilities is a problem in these areas. In that case, you will need to set up your utilities, such as constructing a road to connect to the main road, digging boreholes to cater for water, and using solar panels for electricity. Therefore, you will use a lot of money to set up these utilities making the investment cost high.
No instant cash flow
The major disadvantage of buying and owning land in Wisconsin is that you cannot generate income instantly as soon as you buy the land. The only option will be to lease the land to lenders, which still takes time because you need to sign the contract with them, and you have to wait for a certain fixed period for them to pay you, that is, weekly or monthly. You can also decide to sell the land at a higher cost than the buying price, which can take time before you find an interested buyer. Additionally, you have other costs, such as the cost of maintenance and property tax to pay. And since the land is idle to make extra cash, you will have to chip in with your money or sell a portion of the land to cater for these expenses.
Use of permits and approvals
Before you start any project or activity on your land, you need to have approval by getting a permit from the state authorities in Wisconsin. The process can sometimes be hectic and time-consuming because some local government officials will need evidence that the land is fit for the kind of activity you want to do on the ground. You will require a surveyor to test the soil and confirm that the land can handle the pressure of that activity and then take the document to the state authority for them to give you approval.
Factors to consider when buying and owning land in Wisconsin
Having discussed the benefits and limitations of purchasing and owning land in Wisconsin, it is now clear that you can benefit from investing in Wisconsin. However, before you purchase the ground, there are some factors you need to consider to avoid buying land that does not suit your needs. Below are some of the factors to consider:
Depending on the kind of development you want to do on the land, you need to confirm that there is access to utilities that you would like to utilize. For instance, if you plan to farm and sell farm products, you need to ensure that there is access to the road when transporting the products to the market. Some essential utilities such as water and electricity are also necessary for crops irrigation, lighting, and security. If the land does not have access to these utilities, the cost increases because you have to set up alternative utilities.
Zoning is a process that determines how a given land parcel and the type of buildings to structure. Zoning regulations differ from place to place for various reasons. Therefore, before you buy land in Wisconsin, you need to ensure that the kind of activity you want to do on the land parcel agrees with the zoning regulations. Suppose you start building a commercial property and the zoning laws state that you should use the land for residential purposes. In that case, the associated authority will likely demolish your property, or you can apply for a re-zoning, which is expensive.
Background of the land
Before you buy land in Wisconsin, you need to know its historical background that guides you on the kind of project you can do to utilize your land and to confirm that you are the valid owner of the land. Additionally, you also need to know the historical background of the land to know the previous owner’s activity and to check if there are minerals and resources you can tap if you have the right to use them.
Location of the land
Depending on the type of activity you want on the land, you must choose a suitable place around Wisconsin to maximize productivity. For example, if you're going to do farming, you need to select a location with easy access to water and road, and if you want to build commercial properties, you need to ensure that the land is near the town center. The benefit of looking for the correct location before buying land is that if you find land that is not suitable for your needs, you have the option of choosing another one.
Wrapping it Up
Buying and owning land in Wisconsin is a good and strategic investment opportunity. Taking advantage of the low cost and maintenance of the vacant land can maximize your profit margin if you decide to develop and sell the ground later. Before buying land in Wisconsin, ensure you are familiar with the discussed factors.
About THE AUTHOR
We loved family’s outdoor adventures so much we started a land business just to help others buy their own land. We’ve sold to dozens of people from ATV weekend warriors to camping enthusiasts to retired truck drivers. Our inventory spans five western 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.Read More About Brittany Melling