In real estate terms, land is considered to be any real property that is attached at or below the surface and the airspace around it which is permanently attached to the earth of the property or land. Land can be unimproved land or improved land. Unimproved land in regards to real estate is the land that does not have the basic services that is necessary to use the land such as electricity, water, phone service, or street access. Improved land is the land that has all of the basic services that was mentioned before and is ready to be built on.
There can be some advantages and disadvantages to owning land. Some of the advantages of owning land could be there are many choices to choose from when it comes owning land. A potential land owner can choose from several hundred square feet to a few acres of land depending on what they can afford. Once the land owner secures the land, you can always choose to build your dream home in the future. Another advantage of owning land is that the property taxes and maintenance of the land are fairly low and the cost of the land is usually more affordable when there is no home built or when are improvements done to the land. One last advantage to owning land is that supply and demand will always push the price of your land upwards, that way if you are holding onto the land to make a profit down the road; there is a fairly good chance that you can make some money in the future. There are some disadvantages that you will want to take a look at when it comes to owning land and those could be the zoning of the land. The government can step in at any time and decide to rezone the area of land for a different use and this could potentially affect your land value. Another disadvantage of owning land is if you are looking to make immediate money on the piece of land that you are purchasing; it could take years before you see a return on your investment. Finally, one last disadvantage of owning land is when you own a piece of land you will essentially need to have a geological survey done to your land to make sure that your land is suitable for development. Having a geological survey could turn out to be very expensive and results of the survey could have a negative effect on the value of your land.