Buying land is a huge investment that warrants deep consideration of the benefits and risks. Land is purchased for a wide range of reasons, for investment, for resale, to build a custom home, a business or for recreational use. Depending on your intentions for the land, the area, the zoning laws, the cost and the market all need to be taken into consideration. In Centre County, Pennsylvania, Triple E Homes regularly helps clients understand the best options for buying land for custom homes. If you intend to use the land in an alternative way, it is vital that you speak to someone with appropriate expertise. 

Buying land as an investment can have several benefits, including the potential for appreciation in land value, the ability to generate income through renting or leasing the land, and the possibility of using the land for agricultural or commercial purposes. Additionally, land is a tangible asset that can serve as a hedge against inflation. 

Overall, investing in land can be a good option, especially for those seeking a space for their new custom home. Buying land is a long-term investment and not suitable for short-term gains, so understanding the risks and benefits is more significant than other real estate investments. We have compiled a list of the key benefits of purchasing land to help you make the best possible decision.

Land has the potential to appreciate in value over time, particularly if it is located in a desirable area that is experiencing growth and development. When you consider resale, building a home on the land or even options for retirement, appreciation value is a massive benefit to buying land.

Land is a tangible asset that can be seen, touched, and owned, which can provide a sense of security and stability. Tangible assets are generally considered to be more liquid than intangible assets such as stocks, bonds and intellectual property. This means they can be converted into cash more easily and quickly, providing a source of liquidity in case of emergency.

Land can serve as a hedge against inflation, as the value of the land may increase in line with rising costs of living. This protects you and your family from the cost of living going beyond your means and leaves you with an in case of emergency asset.

Land can generate income through renting or leasing to tenants or by allowing others to use the land for farming or other purposes. If you choose to move or buy another home, investing in land and building your own home can mean a massive potential income through renters.

Owning land can provide certain tax benefits, such as deductions for interest on mortgages and property taxes. Understanding the benefits of owning land as they apply to tax benefits is something you can discuss with your real estate agent or accountant.

Land can provide a sense of privacy and seclusion that is not possible in a suburban or urban setting. Purchasing land and building on it means that you can design exactly how your space will look, adapting the outdoor areas, windows and structure to achieve ultimate privacy for your custom home.

Land can be passed down to future generations as a family heirloom or investment. Even if you are not choosing to build on the land, keeping land long-term is a wonderful way to pass down something that is potentially very valuable to the next generation of your family.

The risks associated with buying land are quite clear. If you are expecting your land to appreciate in value, it is important to remember that there is no way to guarantee that it will appreciate as much as expected or as quickly as you might like. Buying land for personal custom home building with the intention of keeping the home for a long period of time decreases this risk significantly. 

Additionally, it can be difficult to generate income from land that is not in a desirable location or is not zoned for commercial or residential development. Buying land that is appropriate for your purpose and understanding the potential for the location is key to smart land purchasing. Across State College, Boalsburg, Bellefonte and the great Centre County area, there is ample land available but understanding if the land is suitable for the intended use - like farming or residential building, is the first step to knowing if it is a wise decision. 

If you are considering purchasing land for the purpose of a custom home, Triple E Homes can help. The founders of Triple E Homes have combined over 50 years of experience in construction and custom home building. But we’re not just builders. We’re proud to call ourselves "craftsmen" who are experts in old-world Amish building techniques. We pay the utmost attention to every detail, no matter how small, until your home is a finished work of architectural art. That means that from the purchase of the perfect land all the way to the completion of your home, we are available for advice. Contact us today to learn more about how Triple E Homes can make your custom home dreams come true.