Before turning a piece of land into a farm,look at the zoning for the parcel. If it is rural,its zoning probably allows agricultural uses. If it is urban or suburban,though,the zoning code may ban farming. Even if farming is allowed on your parcel,many farm activities run afoul of other regulations.
What determines the value of a plot of land?
These different land uses link to the zoning of a plot of land, which is an important factor for every infrastructure project, which makes land regulations a crucial determinant of land values (Levkovich, Rouwendal Brugman, 2018). Open space conservation, for instance, can lead to an increase in land values (Wu et al., 2015, p. 74).
How do land regulations affect the price of residential real estate?
According to Levkovich, Rouwendal Brugman (2018), strict land regulations, such as the limitation of the supply of residential land, lead to higher prices for residential real estate, whereas prices for vacant land are usually negatively affected.
Are plots of land a good alternative investment?
Since plots of land have become a popular alternative investment, the results obtained in this research may be primarily valuable for real estate developers and investors to evaluate their future cash flow.