i am new to land investing and have found a parcel of land that i am undecided on. The area is close within 2 miles of my home town Which i currently live. The area is a rural area in that is slowly but surely being developed. The parcel that is mentioned is 8 acres and located aside a new development that has Been completed. The asking price is 10k. With an annual tax of $112. The only problem i have run into is that the land was previously zoned residential bit now is zoned open space. I would greatly appreciate anybodys insight on this matter or previous experience on open space zoned land.
You might want to check out the county tax assessor's site and find out what the county assessed value on the property would be. Comps of the area would be better. I'm not the saying that the county has the best numbers but that will put you in the ball park of valuing the property. You may also want to talk with the county about moving that back to residential zoning and why they would move the zoning from res to open space. Best of luck
@Marc Oister what is your exit strategy for the piece of land you are considering investing in? Buy and hold, flip, wholesale, sell on terms, etc. The members of my land investing Facebook group flip raw land on a daily basis. You may want to consider investing in one of the land investing programs available to get more details about all the moving parts of this business and how to evaluate a piece of property before buying. You may want to check with the county to see the rules surrounding the allowable uses for the zoning of the parcel of land.
Oh lord, I see this post is from long ago... Sorry.
From the information you gave, it sounds suspiciously like a parcel that the developer of the property next door needed to reserve as dedicated open space for the housing he/she built and is now looking to unload the tax burden.
If it's been rezoned from Residential to Open Space, there's little to no value, hence the $10k price for 8 acres. It may be a lose-lose situation to get stuck with a property that you cannot rezone but have the privilege of paying taxes and assuming all of the liability.
Talk to a city planner. They'll tell you the real deal.
@Marc Oister I love the strategy of starting in your own backyard, but often times those deals aren't the best as I like to hit the Southwest and Florida. No one wakes up and thinks to themselves I'd love land in Pennsylvania (ulnless you live in PA). However, people are intrigued by other fast growing states.