Since the beginning of time land has been one
of the soundest investments one could make. In recent times, banks
have recognized vacant land is a particularly strong investment.
Consequently, many banks have developed financing programs for vacant land
Programs vary, but it is possible to finance vacant land for as
little as 10% to 20% down. This means that the bank will provide 80%
to 90% of the financing. Generally, payments will be amortized over
a 15 to 25 year term to keep the payments reasonable. Most banks
offer various interest rates depending on the financing program you
select. You will normally be required to make a balloon payment in
either 1 year, 3 years, or 5 years. At this time you may either pay
off the loan or refinance.
You may also opt to use home equity to purchase your vacant land.
This may have tremendous tax advantages for you, because in many
cases the interest paid on this type of loan is tax deductible. You
should always contact a professional accountant or tax advisor if
there are any questions about this.
As a land owner, you may find that you are saving money faster than
if it were deposited in a bank! You start out with 20% equity in
your land. As land prices continue to rise you may realize a greater
return on your investment in land than you ever thought possible!
For example, the June 17th, 2000 issue of the Milwaukee Journal
Sentinel reported that the average price of an acre of land in
Wisconsin rose by 24% in 1999, "the largest one-year increase in at
least 20 years..." Between 1999 and 2000 the average price for an
acre of land increased by 42%! Very few investments pay such high
dividends! Look at the example below. It shows standard
financing of a $35,000 property.
Monthly payment based on financing $31,500 at 7.5% amortized over 25
As a Land Specialist I am prepared to assist you with arranging your
financing. Most vacant land purchases are straight forward and can
conclude within 2 to 3 weeks. Approvals take as little as 3 business
days. It's fast, free, and confidential. Financing made simple.