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Buy Raw Land Cautiously to Avoid Raw Deals |
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Sunday, 30 July 2006 |
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Increasingly, people are buying raw land while it’s available and affordable. Are there pitfalls?
In the face of rising demand, prices for undeveloped land are shooting up. Last year, farmland values rose at 11 percent, their highest year-over-year rate, according to the Agriculture Department.
There are some pitfalls to buying land and some steps buyers should take to protect themselves.
Consider having the land surveyed. Property lines aren’t always well defined. Make sure the spot where you intend to build can support it.
Pay attention to access. Some makeshift roads that cross several properties aren’t legal and another owner could attempt to deny you access to your property. Try to avoid giving up any mineral rights. If gas or oil is discovered not only will you lose potential income but you might have to put up with drilling on your property.
Source: The Wall Street Journal, Jeff Opdyke (07/22/2006)
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