What Do Rising Interest Rates Mean for Buying Land?

If you’re like many people, you know that the fed keeps raising interest rates – and we don’t know when they’ll come back down again. But those interest rate hikes may make you question whether now is a good time to buy land. This guide explains the ups and downs so you can make the best possible choice.

As interest rates begin to rise, many potential buyers are wondering if now is the time to buy land. For some, the answer may be yes. If you’re in a position to buy land and build equity now, it’s still a good idea to do so; traditionally, land appreciates in value.

What Kind of Land Should I Buy in North Florida?

Though the type of land you should buy depends on your individual needs, these are the types of land that typically appreciate in value and that we’ve seen continuing to sell:

Timberland
Farmland
Cattle ranches
Recreational land
Vacant lots and home sites

Here’s a closer look at each.

What is Timberland?

Timberland is land that’s primarily used for forestry or the production of timber. In North Florida, this type of land is often found near rivers or lakes and is popular with investors and developers.

Why is Timberland a Good Investment?

There are several reasons why timberland is a good investment:

The value of timber grows over time.
Timber can be harvested and sold for profit.
Timberland can be used for recreation, such as hunting or camping.
Timberland can be developed into residential or commercial property.

What is Farmland?

Farmland is land that’s used to grow crops or raise livestock. In North Florida, farmland is typically found in rural areas and is used for agriculture.

Why is Farmland a Good Investment?

Farmland is a good investment for several reasons:

The value of farmland typically increases over time.
Farmland can be sold for profit.
Farmland can sometimes be developed into residential or commercial property.

What is Cattle Ranch Land?

Cattle ranching is the raising of cattle for meat or dairy products. In North Florida, cattle ranching is typically done on large tracts of land in rural areas. This type of land is commonly referred to as “cattle ranch land.”

Why is Cattle Ranching a Good Investment?

Cattle ranching is a good investment for several reasons:

The value of cattle typically increases over time.
Cattle can be sold for profit.
Cattle ranch land can sometimes be developed into a residential or commercial property.

Related: What are closing costs?

What is Recreational Land?

Recreational land is land that’s used for recreation, such as camping, hiking, fishing, or hunting. In North Florida, recreational land is often found near rivers or lakes and is popular with investors and developers.

Why is Recreational Land a Good Investment?

Recreational land is a good investment for several reasons:

The value of recreational land typically increases over time.
Recreational land can be used for recreation, such as camping, hiking, fishing, or hunting.
Recreational land can sometimes be developed into a residential or commercial property.

What are Vacant Lots and Home Sites?

Vacant lots and home sites are pieces of land that are not being used for any specific purpose. In North Florida, vacant lots and home sites are often found in rural areas and are popular with investors and developers.

Are You Buying a Home or Land for Sale in Lake City?

If you’re moving to Lake City, we can help you find the perfect place to live. Call us at 386-243-0124 to tell us what you want from your home and we will begin searching right away.

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What Do Rising Interest Rates Mean for Buying Land?