Raw Land In South Jersey?
I heard investing in raw land in south jersey is a good long term invesment since the land is being developed very quickly and the price of raw land should go up in the next several years. I was wondering what you guys think about buying raw land and holding on to it for several years. Is it a good idea? Is South Jersey a hot place to invest? What area in Southern NJ do you guys think will do well in the future? I'm just a newbie trying to figure out what the best long term investment is. Thank you for any advice you give.
I don't know about the market values of raw land in South Jersey, but I do know what I see, and that is it is being developed at an alarming rate. I think the most rapidly developing spots near me in SJ are Winslow, Berlin, Washington Township (if there is any land left there), maybe also including Atco. Particularly Berlin and Winslow have gone nuts, Williamstown still has some land left.
There is a parcel of land down the street from me for 70K, may need private sewer connection, in themiddle of a terrific neighborhood. The guy that owns it is just holding onto it but I would love to nab it. The houses around me (Pitman) have been going up in value in the last 3 years, for example, I researched appraised versus sale price (final sale, not asking price) and they are appraised for example at 100K and going for 150-170K. It's nuts.
Lorraine
Raw land is usually considered a good long-term play (after all they aren't making any more of the stuff). I have no specific advice re. the Jersey market. But I will pointout that the primary risk usually mentioned in connection with raw land is that it has no cash flow. Therefore you must pay the taxes and mortgage payments (if any) out of your pocket while you hope for appreciation. This is not to discourage you, only open your eyes to the situation.
To the above posts, I would add this.
I don't have experience in NJ, but if you want to get a handle on the desirability of land investing in specific areas, I would start by taking one area and researching it. See who is building how many houses for what price tags. Go to the municipal office and check out their master or comprehensive plan. This may give you some clues about present and proposed growth and non-growth areas. Look at their zoning ordinance and map. Find out what properties are currently in the subdivision and land development approval process.
Land derives its value from its ability to be used for something. The greater the demand, the greater the value.