FREQUENTLY ASKED QUESTIONS

What makes land such a good investment?

I have always considered the land I own to be an asset as well as an investment. When you purchase a quality, well-located tract of land, there are many factors working in your favor. Any and all area growth (whether it be new school construction, utility expansion, a major road improvement project, etc.) will benefit the value of your investment. Most well-thought-out improvements to the land will enhance its value. So many times people have purchased a rural tract of land only to have development catch up to them. Ten years ago, areas 60 miles from Atlanta were considered very rural. Today, they have become suburbs of Atlanta. Those landowners who purchased land 60 miles from Atlanta enjoyed the land for years before the opportunity for a great return on investment came knocking at their door. Always look for unique features on a property to set it apart from other tracts in your area. Whether that is a lake, pond, river frontage, a breathtaking view or beautiful landscaping, it will only add to the value of your investment. (return to top)

What kind of financing is available for a land purchase?

Most lending institutions loan money on raw land. Naturally, the borrower and his or her financial profile will determine a great deal towards the ultimate negotiations with the bank. For a primary residence, you could pay as little as 10% downpayment. Generally, banks are looking for a 20% downpayment for raw-land lending. You can usually get one to two years interest and only a 20-year amortization to follow. If you are purchasing a lot in an established community, financing will greatly depend of your plans for the lot. These are general guidelines and should not be viewed as an inducement or guarantee by ETY, LLC. Please consult your local banker to ascertain details of their lending policy. (return to top)

Are there any tax advantages to purchasing raw land?

The only tax benefit would be if you actually farmed the land. You can reduce your property taxes by obtaining a land conservancy designation through your local municipality. Land is a non-depreciable asset. (return to top)

What are some ways to produce income from land?

If the land has a home located on it, you can use that home for rental income. Depending on the size of the tract, there are always opportunities to lease the property to groups who would like to hunt on the land. You can also work with farmers interested in harvesting the hay. Arrangements can usually be made for a 50/50 split of any profits on the sale of the hay with the farmer. (return to top)

What can I do to enhance the value of the property?

The first thing I tell people who ask this is question is to focus on landscaping. I am not saying you need to completely sod the entire property, but dressing up your entrance, accenting different areas of the land and under-brushing wooded areas will add value to the land, as well as enjoyment for you. Property zoning is another way to add value. If you create a land plan for your property that increases its potential for future development, you can submit that plan to your governing municipality for approval. Most developers who would purchase your land will want to buy it subject to their ability to achieve favorable zoning that fits their needs. (return to top)

Is there a "rule of thumb" on how long I hold land to realize a return on my investment?

Not really. Each property is unique in that the market area surrounding it is unique to itself. You will see long-term capital gains benefits if you hold your land for more than 1 year, and there is a tremendous tax savings associated with that gain. It is very important to keep up with the real estate activity in your area. This is the best way to gauge the values you can achieve. (return to top)

Buying land in the Southeast makes sense, BUT I will not know anyone local from banking needs, surveying to an appraiser. How can I get names of local reputable business people?

I have always used the local chamber of commerce as well as the government offices at the county seat. These folks are very helpful. I always start with the local chamber of commerce. You can usually find the contact number on their web site. (return to top)

I have seen a property on your site that I really want to pursue! What do I do next?

Send me an email or call me for more details about the property you are interested in. We will even help you make arrangements for a visit. (return to top)

Why the name, "AllThatLand?"

All legal descriptions of property begins with the phrase "All that tract or parcel of land." Since that is a real mouthful, I decided to be a little more concise, using the phrase "AllThatLand." (return to top)

DISCLAIMER: Please seek the advice of professionals when considering all aspects of a land purchase. The answers given above are the opinion of ETY, LLC and should not be considered as legal, lending or tax advice.