on Jan 8th, 2008Categories of Land for Investment
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No hard and fast rules exist for the describing and labeling of undeveloped land, but to understand land investment adequately, you need to become familiar with the investment categories of land and their respective attributes.
Land is usually categories by either its location or its use - this way the descriptions are broad enough to encompass most land and clear enough to differentiate its use among parcels.
Some commonly used categories of undeveloped land are…
Land at the edge of development - situated at the fringes of a developed area or just beyond active development, usually in suburban or rural locations.
Infill sites - surrounded by developed parcels of property or property currently being developed. Infill sites are parcels of land that were “passed over” during the first phase of development. They are usually smaller and have a shorter development time-line.
Urban renewal sites - previously developed land that has become riped for redevelopment in the near future.
Parking lots - may represent land being “parked” literally and figuratively, in anticipation of development demand.
Farm land and/or commodity land - properties located in rural settings with an abundance of open space around them.
