Whether you are thinking about investing in property or you already own raw land, there are lots of different ways you can creatively utilize it efficiently.
Owning raw land can be extremely profitable, but it ultimately depends on where it is located and the resources you have available. You should consider the different benefits of effectively turning your plot of land into something great.
With so many ways to transform your land, it can be difficult to make a decision. Some of the best things to do with raw land include building a home, farming, providing storage, and building solar energy. These are only a few of the many different ways you can generate income with raw land.
Raw land can provide a way for people to do many different things like build their own homes or farm crops. However, there are some risks involved with building on raw land and it is important to protect yourself when doing so. This guide includes more examples of what to do with raw land.
Raw land is a term that refers to land that has not been developed and has not been used for any other purpose. We have analyzed the different ways it has been used to provide accurate information for you to consider on your property to choose the best method that works for you.
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What To Do With Raw Land
Many people find themselves with a lot of land and not enough time to develop it. The land they have might be in the middle of nowhere, or it might be in the middle of a city. Either way, they don't want to sell it off and make less than what they spent on it.
Most people will hold onto the property and hope that someday they'll be able to make money on it. But there are other ways to deal with raw land that may work better for you and your situation.
Some people might want to build a house on their land and others might want to use it as their outdoor retreat. There are all sorts of reasons that people may be looking for raw land and there are many options available when deciding what you want your property to become.
You can use raw land to build a business to generate cash flow, build homes or apartments for rental, live on the land, and do everything in between. The options are truly endless, and this is what makes raw land such a valuable and highly profitable investment.
18 Ways To Use Raw Land Effectively
Land is the fundamental natural resource of any state. The use, preservation, and development of land can also bring about social benefits. So it is necessary to make full use of the land to make sure that it is protected and preserved.
A lot of people are looking for ways to use raw land effectively. It is growing in popularity as a new method of investment because of the potential upside returns it can provide if used the right way.
Raw land can be acquired for a low price because of its lack of development and infrastructure. With the proper planning, it can be turned into an income-generating asset for the owner.
Below we will discuss 18 of the most effective ways to use raw land to maximize your return on investment. These are creative ways you can turn your raw land into something special to use to your advantage.
1. Build A Home
One of the most popular and obvious ways to use your raw land is to build your house there to live. The idea of building a house on your property is not new but this has become more popular with the recent rise of construction technology.
Because the plot of land is raw and vacant, you have much more flexibility with the zoning rules for your home. This allows you to create a custom home based on your personal preferences by building a house you truly love.
If your land is big enough, you could be looking at an opportunity to build a multi-family home or a subset of apartments for renting too. This would be more of a business venture to generate income from your land instead.
Before building any homes on your property, you need to be sure to get proper measurements of the land size to determine the legality of any housing. This is especially true for a multi-family property.
Farmland is an investment that has been popular for quite a while now. With the rise of agriculture, turning raw land into a farm has become more useful than ever before. It provides tax breaks and is useful too.
Farmers can sell their crops for higher profits and use their land as collateral for loans. It can be used by investors to generate income from agricultural products like crops, which can be sold for profit.
The farming business is a great way to make money and build wealth over time. The key to success in the farm business is to invest in the right type of farmland, plant the right crops, and use good farming practices that will maximize your profits.
The best thing about farming is the number of different ways it can be accomplished. For example, family farms are one of the most popular farm types in the United States and estimates say they make up 96% of all farms.
3. Provide Storage
Another useful way to develop raw land is by providing storage. The types of storage you can offer with your land are endless depending on the amount of space and money you have to develop the property.
For example, self-storage facilities have seen a boom over the past few years as local consumers look for places to keep their belongings at an affordable cost. If you have raw land and some capital, you could develop a self-storage facility.
If a project like this is not within your budget, there are still other storage options that you can consider. You may not even need to develop the land, and instead, you can store boats, RVs, or other large vehicles.
This type of storage would only require turning your land into a plot of pavement or gravel where it would be easier to store these vehicle types. You could also consider some type of security system like a large gate or fence around the area to protect everything in storage.
4. Start A Vineyard
If you are interested in growing grapes and making wine, you may want to consider turning your raw land into a vineyard. To start a successful vineyard, it is important to have the right location, soil quality, and climate.
The cost of starting a vineyard can vary depending on the size of the land and the type of grapevines that are planted. If you are located in a region with good weather and quality soil, starting a vineyard could be extremely profitable.
Not only could you grow grapes and make wine here, but you could also offer vineyard tours among other things. This type of business would be extremely enjoyable and fun for someone that understands wine and how to make it.
5. Build Solar Energy
Solar energy is an important part of our future. With the help of solar energy, we can reduce our carbon footprint and have a cleaner environment. There are many ways to use solar energy, but one way is by using your raw land to build solar panels.
There are a few different ways to successfully execute this plan too. It can be as simple as building solar panels across a big field or you could also include windmills and other renewable energy machines.
Another way this would work well is by building solar greenhouses that use hydroponic technology for farming. This would allow you to produce crops and food too that could be sold as another income stream.
By building solar energy, you would also save money on your land with taxes because there are many exemptions and tax breaks that would apply to your piece of land.
6. Build A Sports Field
There are many ways to use raw land, but one of the most popular is to build a sports field. A sports field can be used for a variety of activities, from football to soccer. It's also a great place for a family to spend the day.
If you have some extra land, consider building a sports field for your local community or a school in the area. You could even discuss the plan with your local town government to see if there could be a way they would pay for the development too.
You will need to ensure the location is accessible to all and has plenty of room for people to gather and play. It also should be designed for the sport or sports that will be played on it. A sports field will likely not take up your entire piece of land so you could be looking at an opportunity to build more around it.
7. Parking Lot Development
A parking lot is a valuable piece of land. It's the first thing people see when they visit your business and the last thing they see when they leave. That's why it's important to take care of it and make sure it's well-maintained.
If you have a large piece of raw land in a populated area, developing it into a parking lot could be useful for local businesses too. They may be willing to pay fees to rent your land for parking or to cover the costs to develop it.
Parking lot development can be a lucrative endeavor, but it can also be difficult to get right. There are a few key things to keep in mind when developing a parking lot. A lot that is too large will be underutilized, while a lot that is too small will quickly fill up and become congested.
You should also consider the access people have to the lot. It should be designed to blend in with its surroundings, and it should be kept clean and well-maintained at all times.
8. Wildlife Preservation
One of the best ways to use your raw land is by preserving the wildlife that lives there. This can include anything from establishing a nature preserve or wildlife refuge to simply leaving the land undeveloped so that the animals have a place to live and roam.
You can also create a sanctuary for rescued animals or create a habitat for threatened species. By using your land in this way, you're not only benefiting the environment but also the animals that call it home.
Raw land is a valuable commodity, and there are many ways to use it effectively. Many species are in danger of extinction, and their loss would be a tragedy. We must do what we can to protect them and their natural habitats.
There are many ways to help, including creating wildlife preserves, restoring damaged ecosystems, and reducing human-caused pollution. Using raw land as a method of preserving our natural heritage can make a huge impact on the local community too.
9. Raise Livestock
There are many reasons why you might want to raise livestock on your raw land too. Perhaps you're looking for a way to produce your food, or maybe you want to create a sustainable homestead that can provide for you and your family.
Whatever your reasons, raising livestock is a great way to use your land effectively. It can provide meat, eggs, milk, and other valuable products, and it can help to maintain the health of the land by grazing and fertilizing it.
If you're thinking about raising livestock on your raw land, be sure to do your research and choose the right animals for your climate and soil type. Consider what animal types would benefit you most before deciding on this venture too.
Depending on the size and layout of your raw land, you might be able to fit a small barn, chicken coop, or pen for grazing animals. Not only will this provide you with fresh meat and eggs, but you'll also have the satisfaction of knowing where your food comes from.
10. Build An Extreme Sports Area
If you're looking for a way to use your raw land effectively, why not consider adding an extreme sports area? This could include a skatepark, BMX track, or even a zip line to name a few.
Not only will this provide hours of fun for your friends and family, but it will also attract other people in your community who are looking for an adrenaline rush. It's the perfect way to make use of your property and provide a unique attraction for your area to generate income.
Land developers can use the sport of extreme sports as a way to attract customers. To do so, they need to build an area on their raw land that can be used for extreme sports activities.
The area should have good access and connectivity with public transportation, parking, and other amenities. It should also have facilities that are easy to maintain and clean along with following any safety and health codes required.
11. Harvest Timber
Raw land can be used to harvest timber from trees on the property too. Timber is a valuable resource that can be sold for a profit or used for many different activities or necessities of life around you.
The lumber industry is a multi-billion dollar business, and there is always a demand for high-quality wood. By harvesting timber from trees on your property, you can generate an income and help conserve the environment at the same time.
You should think about using your land for timber harvesting because it will generate income for you and allow you to gain more benefits from it in the long run. However, you may need to purchase some equipment to do this effectively.
12. Community Gardening
Community gardening is a great way to use your land to benefit the community. It is basically a garden where the whole community can come together to plant trees and flowers and build a beautiful green space.
Not only does this provide a place for people to gather and socialize, but it also helps to strengthen the community by bringing people together. If you have unused land, consider turning it into a community garden.
You will be doing a great service to your community, and you may even make some new friends in the process. If you are interested in generating profits with your raw land, this is not the best choice though.
However, you could discuss with your local government about using the land for a community garden to see whether this would qualify as a potential tax break or exemption. Some people prefer to use land this way to eliminate their tax bills and keep land in good shape instead.
13. Build A Community Park
A community park is a perfect way to bring people together. It can provide a space for locals to walk their dogs, have a picnic, play with their children or just enjoy the day. It's also a great place for social events and gatherings.
If you're lucky enough to live in a suburban area with lots of open space, consider building a community park with your raw land. You'll be providing a much-needed service for your neighbors and creating a gathering place for the community.
This is another example where any income or money that might be produced by your land would need to come from the local government. They would potentially fund the development of the project for you to liven up the community.
14. Live Off The Grid
If you purchase some raw land, you may find that it's located away from people. This could be the perfect opportunity to set up camp and live off the grid.
There are a few different ways to do this, but it all depends on your needs and preferences. You could build a tiny house, which would be less expensive and more sustainable than traditional housing.
You could also set up a solar or wind power system to generate your own electricity. If you're looking for a simpler option, you could install a well and septic system so you have access to clean water and can dispose of waste properly.
Whatever route you choose, remember that living off the grid is a great way to reduce your impact on the environment. This would only be an effective use of your land if you were located in a remote area though.
15. Build A Campgrounds
If you have raw land that's just sitting there, waiting to be used, you might want to consider building a campground. Not only will this give people a place to stay when they visit your area, but it'll also allow them to enjoy nature and all that your land has to offer.
You can make your campgrounds as simple or luxurious as you want, but just be sure to include all the amenities your guests will need, like showers, toilets, and cooking areas. You might even want to include activities like hiking and fishing in your campgrounds for added enjoyment.
With a little bit of work, you can turn your raw land into a recreational hotspot that people will love. This would serve as an amazing way to draw people to your land while generating income during the process.
16. Open a Local Business
It is possible to open a small business with a piece of raw land. However, it is important to consider the costs and risks involved and any potential restrictions that exist in the area for development.
The land must be located somewhere that has a lot of foot traffic and where there are enough people who will patronize your business. It also needs to be in an area that has good access to public transportation, or you will need to find another way of getting people in and out of your business.
You need to make sure that there is demand for your product or service before investing in the land. You should also take into account how much time and money it will take to develop the land before starting the project.
17. Offer It As An Event Venue
You can offer your raw land as an event venue like concerts to generate income. This would require very little development to get started and you can use this idea to generate a source of income and also make your property more valuable.
If you want to host a concert, then you need a stage and sound system installed on-site which would require some construction work and investment in equipment. You could even negotiate deals with the companies hosting the events to cover these costs and charge a one-time rental fee.
The best thing about using your land for events is that an open field would be perfectly suitable to host a large concert. There would be no need to build anything before getting started other than equipment rentals.
18. Build A Junkyard
Junkyards are a great way to make money with your raw land. A junkyard is an open lot where people can bring their junk to be scrapped by scrap metal recyclers.
There are many ways to make money in this industry, but the most profitable one is by selling scrap metal to do so. The scrap metal recyclers take the junk and turn it into new products like cars, kitchen appliances, and more. The junkyard owners get a percentage of the value of these products.
This is another idea where you would not need to do much development on the land to get started. The open areas are beneficial to store any junk being delivered to the yard and it could remain the way it is.
How To Develop Raw Land
Developing raw land is a process that starts with identifying and researching the property. A feasibility study or market analysis should be performed to see if there is a need for the property and if it will make financial sense.
Most raw land has something to offer, but not every piece of property will be right for full development. Once this research has been completed, the site plan can be drawn up and submitted for approval from the appropriate authorities.
We will show you the steps below to get started with developing so you know exactly what to do with raw land.
1. Determine Your Development Budget
When starting in the real estate investment business, it is important to know what your development budget will be. This is because you need to know how much money you can invest in the project and what types of investments you can make.
The development budget is a general term that refers to the amount of money that a developer has available to complete a project. It includes costs such as land acquisition, construction, and financing.
It is usually based on an investor’s revenue and profits from their previous projects. This will help them determine which type of investments you can make and what you will be able to afford to build on this land.
2. Inspect The Surrounding Environment
The next thing to do is inspect the surrounding environment. You should determine if it's a good place for building and if there are any potential developmental barriers to know what the quality of the land is like.
The quality is measured by the surrounding environment, which includes the soil and terrain, slope, drainage and groundwater, and nearby water bodies. The surrounding environment will also determine what type of development can be done on the site.
Inspecting the surroundings is a crucial step for both developers and potential buyers. It will help them make decisions about whether or not to invest in a given property.
3. Become Familiar With The Zoning
This is critical because you should make sure that there are no other factors that might be impeding your progress such as building restrictions or environmental regulations. Understanding any zoning restrictions will allow you to avoid trouble down the road too.
Every local government enforces zoning codes for land developers too. You need to become extremely familiar with these to understand what you are and aren't allowed to do with your raw piece of land.
For example, a piece of property could have a zoning restriction to build a commercial building. If this was your land, it would limit what you could build and you would be in trouble if you didn't learn about this until afterward.
4. Decide On The Development
The process of developing is not easy. It takes time and effort to get it right. However, once you understand everything you are dealing with, you can decide on what you will develop on your raw land.
One of the main decisions that need to be made is what type of development to build on your raw land. You should consider the type of development that will maximize the value of your property as well as be able to increase its marketability.
5. Begin The Construction Process
Now that you know what type of development you want, it is time to start the construction process.
It's important to make sure that the land is clear of any structures, trees, or other obstacles before starting construction. You'll also want to check if there are any easements or restrictions on the property before you begin construction.
You should first hire a professional land developer to help you with the process because they will be able to give you advice on how to make sure your project is successful and profitable.
6. Market Your Project Accordingly
After everything is complete, it is time to drive business to your property. Whether it is an open house for a rental property or a new small business, marketing is required to get people in the door.
You can do the marketing on your own or you can outsource this to professionals too. Whatever you decide, be sure to make this a priority to maximize your potential income from your raw land development.
What Factors Determine Raw Land Value
Multiple factors determine raw land value. The value of your land is extremely important to consider when you are trying to decide what to do with raw land. It impacts what type of revenue you need to land to provide too.
For example, if you buy raw land that you intend to use to build a business then the amount it costs will dictate your monthly expenses and the type of income you need to generate to pay your bills.
We have listed some of the key factors that will determine how much a piece of raw land is worth and the total value of the property.
One key factor that raw land value is determined by is the total lot size. The larger the lot size, the higher the value but this is not the only factor.
The land value of a property is often determined by how much-undeveloped land there is on it. Larger lots are worth more because they have more potential for future development.
However, the total lot size is the most influential factor. The higher the total lot size, the higher the land value. The lot size is defined differently based on the property type, but with raw land, it typically includes the total square footage of the entire lot.
Location is always considered to be the most important factor when talking about real estate, and this remains to be true with raw land real estate too. Some regions are more expensive too though.
When it comes to undeveloped properties, location is still an important consideration such as proximity to schools and transportation routes or accessibility to open spaces such as parks or lakes. The more desirable your property’s location, the more likely you are to get an offer on it too.
Raw land that is not usable by humans and cannot be used for any purpose will be much less valuable than usable land. The value of the raw land depends on how much it is used for purposes like farming or forestry.
This is because it is the only thing that can be used to generate revenue and make money. The raw land needs to have a good level of usability and accessibility so that it can be used for the purposes for which it was intended. This includes being easy to develop, build on, and maintain.
The value of a piece of land is determined by the accessibility it has. The more accessible your land is, the more people will be willing to pay for it. Many factors may impact the accessibility of your raw land.
For example, if you have a vacant lot in the middle of nowhere, it might be hard for someone to find it. However, if your property is in an area with more traffic in the community, then the land would be more valuable.
With the constant increase in land value, more and more people are interested in acquiring land but without accessibility, it becomes difficult to value a piece of a property highly.
The quality of raw land has a direct impact on the value of your property. You want to buy a piece of property that is in a good condition, with high site quality, and in an area that is popular among buyers and sellers.
The site quality refers to how well the soil is structured, how it drains, whether or not it has any contaminants like pollution or hazardous waste, and if there are any natural barriers like cliffs or rivers that might limit development options for future buyers.
When a piece of land is zoned, it typically has a set of rules that are enforced by the government for the benefit of the public. The zoning restrictions can have an impact on the value of a piece of land.
They will vary depending on what type of property you want to build or what you want to do with your property. It is important to know how zoning affects your property before you invest in it or buy it.
Benefits Of Developing Raw Land
Raw land is a great investment for those who are looking to get into real estate. It is good for those who are looking to build and develop their property and it comes with a few crucial benefits.
Raw land developments are considered to be good investments because they are less competitive so you have an excellent opportunity to get the best deals. This is because they are a bit riskier and require more work.
Lower Initial Cost
Raw land investments also require less money upfront because it tends to be cheaper than developed land. This presents a solid opportunity to buy land with less capital upfront to get you started.
Excellent Appreciation Values
Raw land is a type of investment that offers the best appreciation value because it is a scarce resource and will always be needed in the future. You also can maintain value more because the raw land can be developed into anything.
Is Raw Land a Good Investment?
Raw land is an investment that can be difficult to evaluate. It’s an asset that often requires a lot of time, money, and effort to develop into something profitable.
It’s not uncommon for people to buy raw land in the hope of selling it later at a higher price, but they usually end up losing money in the process. Overall, raw land can be quite risky if you do not have money for developments.
Raw land is an excellent investment because it can provide for future development opportunities in the future and some cases, it can provide for rental income as well. It all depends on what you plan to do with the land.
While raw land may not provide any income right away, it will increase in value over time as the demand for this type of land increases. It should be considered only for people who can afford to develop it.
Does Raw Land Depreciate In Value?
Raw land is a type of land that has not been developed or used for any purpose. In the past, many people thought that raw land would always be worth more than developed land because it was still possible to develop it in the future.
This is an asset that cannot depreciate for taxes, but it also could lose some value over time. This is because raw land has no depreciation value and thus must be accounted for as a fixed asset on the balance sheet.
The price of raw land varies depending on the location and demand in the market. In general, raw land tends to depreciate over time because of its scarcity and lack of development. You can also build on this land to increase the value again.
About THE AUTHOR
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.Read More About Brittany Melling