Unimproved land (sometimes known as vacant lots or more commonly raw land) is land that does not have any active services or public utilities running through it like water lines, electricity or even street access from the public roadways. Improved land is different from unimproved land in that it will have at least a few of these services making it easier to buy and develop. But this doesn’t mean you should avoid investing in unimproved land.
You can use unimproved land for:
- Holding and reselling once property values begin to increase
- Building a dream house
- Creating an investment property to rent or sell
- Developing a community or private grouping of homes
- Designing a park and area to give back to your community
So if you’re wondering whether or not to invest money to build on unimproved land, that will depend on your situation. So if you’re thinking about purchasing unimproved land, below you’ll learned when it is a good and when it is a bad idea to make this investment.