Buying land is often a once-in-a-lifetime opportunity that requires careful planning and a solid understanding of the market. Fortunately, there are many opportunities to find affordable Illinois land. The key is to research the area, look for properties that can generate income through leasing such as farmland, mineral rights, cell phone towers or billboards and work with a reputable real estate agent.
Illinois has long been a leading agricultural state, with over 26 million acres dedicated to powerhouse crops like corn and soybeans. But the state also boasts ample rural acreage in areas ripe for commercial development. In fact, according to the USDA, Illinois holds over 5 million vacant rural land parcels with a variety of possible uses.
These vacant plots hold a lot of potential for both farmers and non-farmers. While they are not as affordable as a cultivated cropland, they can be bought at significant discounts from their agricultural value. Investors interested in the land can build a home, raise livestock, grow crops or even lease the property for recreational purposes.
In addition, is Illinois land a good investment is highly valued as an investment because it is located in a central Midwest location with easy access to major metro cities and interstate highways. This strategic location fuels economic growth and attracts business investments. Consequently, land prices in the state have steadily increased over the past decade.
The state is also a popular destination for foreign investors who are looking to diversify their portfolios with a stable and reliable asset. In fact, according to ChicagoGlobal, a research initiative of Crain’s Chicago Business and the Council on Global Affairs, Chinese, Portuguese and Italian investors have purchased the most land in the state.
Despite these factors, there are several risks to consider before investing in Illinois land. In particular, land values are not as liquid as stocks and bonds, making it difficult to sell in a short period of time. Additionally, the value of land can decline significantly due to natural disasters or changes in the economy.
As such, it is crucial to carefully evaluate the risk-reward ratio of each prospective purchase. The best way to do this is to work with a real estate agent who can help you find affordable land that has the potential for future appreciation.
The best investment options will likely include rural land near a metropolitan area, where population and job growth is projected to increase. The city of Chicago, for example, has a booming economy that drives demand for real estate. The city’s proximity to a wide range of transportation services and the availability of jobs in several sectors makes it an ideal investment option. In addition, the city offers a number of tax incentives for new construction, including a Class L incentive that reduces the equalized assessed value of buildings and improvements on rural land. In addition, the city provides property owners with a tax deduction for their mortgage interest, depreciation and maintenance expenses.