Everyone is well aware that real estate is one of the most sensible investments one can make. Some may wonder, however, if buying undeveloped land is still considered a wise business decision. The MentalFloss.com staff explains that raw land investment paid off for Walt Disney:
But back when Walt Disney was looking for a place to create a larger, roomier version of Anaheim’s Disneyland, Orlando was mostly swampland. So what possessed him to build one of the world’s busiest vacation spots on top of a bog? In a word: Interstates. Where he was going, he needed roads.
He knew he needed to build on the east coast after survey results showed him that a scant two percent of Disneyland visitors traveled from east of the Mississippi. Walt and his associates considered Niagara Falls, but ultimately nixed it because the frigid winters would prevent them from staying open year-round. They decided southeast was the way to go.
Of course, it takes a lot of business acumen—not to mention, a lot of foresight and luck—to make sure that buying raw land can work its magic, like it did for Disney. Still, those looking into buying raw land should know that many factors are involved in the purchase. In most cases, buying residential lots for sale has more potential for success because it’s already primed for development, unlike raw land, where property surveys are needed to determine if it’s feasible for home construction.
Some people are attracted to buying raw land mostly for financial reasons since it’s cheaper than developed land. Despite the affordability, though, doing so could prove to be a mistake, especially if one signs on the dotted line without evaluating the environmental repercussions of developing the land in the first place. As it may turn out, some raw lands could be part of wetlands or wooded areas that should be preserved for environmental reasons as ordered by local governments.
Furthermore, since raw land is undeveloped, it still likely lacks vehicular access to public roads and connections to water and sewer systems. Meanwhile, buying residential land for sale from Cape Coral Lots means people get to purchase land with existing hookups to water and sewer systems.
Anyone who invests in real estate hopes that their decision could bring them huge success. These days, when there are plenty of opportunities for real estate investments, one really has to weigh the pros and cons to ensure that they would get their money’s worth.
(Source: Why Walt Disney Built a Theme Park on Swampland, mentalfloss.com)