California is huge, with multiple types of climate and several different cultures depending on where you are in the state. So if you’re interested in investing in land here: get ready for a huge price tag. Land in California is some of the most expensive property you’ll find in the country.
That doesn’t mean that it’s all worth that high price.
If you’re looking at land in California, here are the top red flags to look out for! Don’t make the mistake of ignoring these.
Unclear or Vague Zoning Requirements
Zoning requirements should be clean in whichever areas you’re looking in. For example, it should be easy for you to tell if a property is better suited to industrial properties or if it’s primed to be developed for housing instead. If the zoning is unclear, this could leave you putting hundreds of thousands of dollars into a property, only for it to be completely useless in its surroundings.
There’s nothing as devastating as putting a year into a property, funneling tons of money into it, and then finding out it’ll sell under what you invested. The house or business will be demolished to make room for something that will suit the area better.
Nowhere Near Any Water Sources
California has a large issue with droughts. This has led to the countless harrowing wildfires that the state has been combating against for the last few years. If you’re interested in a property, and it seems like there’s no water source nearby, you could be in an area that’s high risk for fires or burning. Talk to a realtor or real estate agent to find out the area’s history before you buy.
Land Has Been Vacant for Years
California’s real estate moves quickly. There are many people, and land is expensive, so it makes sense that properties seem to fly off the market the moment they become available. If you notice that a property has been on the market for eons despite everything else selling quickly: be careful. This could mean that something is wrong with the property or that the listing overpriced it for its worth.
Obvious Flooding or Leak signs
Signs of water damage in a home are enough to make anyone falter. In southern California, where it rarely rains: these are a big red flag. This could mean the leaking was from pipes within the home or that the leak isn’t fixed and is just patched for now since it rains so infrequently. A property inspector will be able to give you the final rundown on whether their update and corrections for the leak are worth it.
A Cracked Foundation or Exterior
In a state like California, where there are earthquakes every month, it makes sense that some foundations would be cracked. If you can see these cracks, though, it could mean there’s further damage you don’t want exacerbated by future earthquakes. Unfortunately, this is a problem mostly southern Californians have to deal with, but it should be taken seriously.
If you find a piece of property for extraordinarily cheap that has this issue, it might be a cost-effective option to consider demolishing it and starting from scratch. This is the only way to purchase land in California and make money back in some areas.
Is Any Land Worth It?
You may be staring down this list, wondering if buying any land in California is a good investment: and it can be! It’s important to remember that some of these issues can be fixed, and in the end, California real estate is quickly growing and becoming more valuable. If you want to ensure you get your investment in before the prices skyrocket any higher, it’s a good idea to decide whether some of these red flags can be corrected.
California Could Be Its Own Country
You are drawing in a higher amount of money every year than some countries, which is more of a reason to consider hunting for property in California as something unique to itself. This state deals with yearly fires, earthquakes, landslides, and flooding: it has enough natural disasters to end up in the news almost every other month. So when picking land here, do it intelligently, and ensure that the land you choose is a sound investment.