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Since the beginning of time land has been
one of the soundest investments one could make. In recent
times, banks have recognized vacant land is a particularly
strong investment. Consequently, many banks have developed
financing programs for vacant land purchases.
Programs vary, but it is possible to finance vacant land
for as little as 10% to 20% down. This means that the bank
will provide 80% to 90% of the financing. Generally,
payments will be amortized over a 15 to 25 year term to
keep the payments reasonable. Most banks offer various
interest rates depending on the financing program you
select. You will normally be required to make a balloon
payment in either 1 year, 3 years, or 5 years. At this
time you may either pay off the loan or refinance.
You may also opt to use home equity to purchase your
vacant land. This may have tremendous tax advantages for
you, because in many cases the interest paid on this type
of loan is tax deductible. You should always contact a
professional accountant or tax advisor if there are any
questions about this.
As a land owner, you may find that you are saving money
faster than if it were deposited in a bank! You start out
with 20% equity in your land. As land prices continue to
rise you may realize a greater return on your investment
in land than you ever thought possible! For example, the
June 17th, 2000 issue of the Milwaukee Journal Sentinel
reported that the average price of an acre of land in
Wisconsin rose by 24% in 1999, "the largest one-year
increase in at least 20 years..." Between 1999 and 2000
the average price for an acre of land increased by 42%!
Very few investments pay such high dividends! Look at the
example below. It shows standard financing of a $35,000
property. |
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As a Land Specialist I am prepared to assist
you with arranging your financing. Most vacant land
purchases are straight forward and can conclude within 2 to
3 weeks. Approvals take as little as 3 business days. It's
fast, free, and confidential. Financing made simple. |
