With its stunning natural scenery, quaint small towns and proximity to big cities like NYC and Philadelphia, New Jersey is a popular state for buyers seeking quality of life perks. But, the Garden State also offers significant drawbacks that should be carefully considered before committing to a land deal.
One of the most prevalent complaints about New Jersey is its heavy traffic congestion. This is exacerbated by a lack of efficient public transportation options. The frequent gridlock can lead to long, frustrating commutes and detract from overall quality of life.
Another common concern is high property taxes. The state has some of the highest in the nation, so be sure to factor in these costs when considering a potential pros and cons of buying land in New Jersey purchase. Other expenses to consider include utilities, construction and development fees, as well as zoning laws that determine what you can do with your property.
Zoning regulations can vary based on where you’re located, so research rules for the area you’re interested in. You can typically find these on a city or county’s planning department website. The rules will determine what structures you can build on your parcel and if it’s suitable for your intended use.
In the short term, rising interest rates and inflationary pressures could cool demand for land investments in New Jersey. But, longer-term investors with realistic expectations could see stable returns on their investment if they do their homework.
The state’s financial woes aren’t a big surprise to those in the know, and many real estate investors recognize this as an opportunity. New Jersey’s shaky budget and unfunded pensions create financial challenges for state residents, while mismanaged government spending contributes to a massive deficit. The resulting debt can impact the economy, making borrowing more expensive and stifling infrastructure improvements.
Land prices in New Jersey can vary wildly depending on location. For example, properties closer to urban centers will cost more per acre than those in rural areas. In addition, the size of your parcel will also impact price. Small residential plots of up to 5 acres typically sell at lower prices than larger agricultural and commercial sites.
A final consideration is the risk of natural hazards. Some New Jersey lands are prone to flooding during heavy rains, while others face the threat of severe storms and hurricanes. Be sure to investigate the risks and make appropriate insurance and financing arrangements accordingly.
Buying land isn’t a sure-fire way to grow your wealth, but it can be an excellent way to diversify your investment portfolio and gain exposure to an increasingly valuable asset class. With some careful planning and research, you can reap the benefits of owning land in New Jersey. Just be sure to weigh the pros and cons before making your decision. If you need help determining if buying land is the right move for your investment strategy, reach out to a reputable local land buyer, such as Beacon Realty Investments. They can assist you in weighing your options, and guide you through the process of converting vacant land to cash.