There are a number of factors that can affect the present and future market value of a property. As a potential buyer or seller with no guarantee of what the future value of a property may be, understanding the five key factors listed below that can affect the market value of a property will aid in making a safe and wise investment decision.
1. Supply – Having a general understanding of the laws of supply and demand are very useful when it comes to determining the present and future value of land for sale in Florida. In general, land that is more scarce is going to have a higher present and future market value than land that is more readily available.
2. Condition and Arability – Florida land for sale that is intended to be used for agricultural purposes and is fertile and cultivable will fetch a higher present and future market value than land that is not.
3. Zoning and Development – Zoning laws restrict the type of development that can be made within a certain area, and typically require approval from a governing agency before any development can take place on a piece of land. Because these zoning restrictions limit the type of development that can occur, it may potentially have a negative impact on the property’s future value.
4. Taxes – In the State of Florida, the taxes paid on Florida land for sale varies from county to county, and also depends on the type of property, its size, and its intended land use. These taxes, depending on whether they are high or low, can sway a buyer to purchase one particular property over another.
5. Location – Land for sale in Florida that is in or near a population center is going to be greater in value than land that is not. This is because land that is located closer to a population center is typically more scarce. Land that may not currently be near a population center, but is located in an area that is anticipated to experience population growth in the future may be both affordable and also have great appreciation potential.
When making a land investment decision, these five factors should be taken into account, and are essential in protecting your investment in Florida land for sale.