Land for sale is dominated by key players - who
often hold large swathes that smaller investors want
to buy - and they’re not selling it cheaply
anymore - prices asked, and received tend to be quite
high.
Not only are prices up - they’re expensive
now - and the upside isn’t going to be what
it was over the last 5 years.
Arizona land for sale tends to be more speculative
than buying developed properties. That makes good
Arizona land lots harder to value - and makes financing
more difficult, if buyers want to pursue this option.
Some lenders - including most of Arizona's largest
banks, simply don’t give land loans to non-commercial
buyers - except those who’ve selected land
lots with sewer lines, road access, and other infrastructure
in place.
"Ideal borrowers hold for 12 to 18 months while
designing their dream homes," said Mike Downing,
a senior vice president at Chase Home Finance in
Phoenix. "As for raw land, where people are
looking for the next big opportunity to flip, we
don't participate in that."
Hard lender terms encourage seller financing - and
of course, cash deals. This can put raw-land purchases
out of the reach of middle-class buyers - especially
since land doesn't generate any Income – it
relies on development to bank a profit.
Buyers of Arizona land in lots, or parcels of 5
to 10-acre can pay up to $200,000, 10 years ago,
you could buy for around $45,000."
The phoenix market continues to attract investors
- but how good an investment is the land? In addition,
will prices really hit the highs that people expect
- with the economy likely to slow in the foreseeable
future? Can investors really make 50% - maybe, but
there are problems ahead.
Raw land, not directly in the path of development
is a blank canvas - whose use and value can be hard
to predict.
Phoenix still has room to grow - to the southeast,
and west - but with a good supply of land in this
area, land may be difficult to sell quickly - and
at a profit.
The history of land for sale in Arizona points to
holding longer term. Land can generate excellent
returns longer term – and in Arizona, this
should continue. Anyone looking to become wealthy
quickly from Arizona land may find it hard to do
from now on.
Arizona Land Prices are fuelling another Market
As Arizona land prices look as if they’ll
tail off, this is driving investors to look at other
markets. One market that appeals to many Americans
is Costa Rica. With Costa Rica being just a three-hour
flight away, and with land prices up to 70% cheaper
than in Arizona – Costa Rican land prices are
booming - and prices will continue to boom.
In Costa Rica, many investors are making 100% profits
in just a year! This is one market that doesn’t
look like slowing down in terms of growth. Investments
are hitting record levels - as Americans flock to
this country for the good life.
The baby boomer generation is realizing they must
take steps to preserve their lifestyle - and that’s
why the trend in Costa Rica will continue - and land
prices will continue to soar.
Costa Rica is stable, has good ties with the US,
buying land is easy - and you get the same rights
as the Costa Rican citizens themselves. Throw in
tax advantages, and Costa Rica land for sale offers
cheaper lots - and more growth potential, than Arizona
land for sale.
