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Is Buying Land for Sale in Colorado a Good Investment?

Published: 09-09-21 Category: Investing

Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.

We see a plot of land for sale in Colorado.

This article was updated on 8/07/2023.

Colorado is full of stunning, mountainous landscapes to explore and other attractions to see, but its residential housing market is seeing falling purchase activity amidst expensive costs of living. While you can still connect with an aggressive agent and scour the market, other aspiring or existing homeowners may leverage the Centennial State's beautiful terrain and purchase land for sale in Colorado to design their own home, instead.

Outside of homeownership, real estate investors may be able to snag commercial land in Colorado that draws attractive leasing opportunities and provides the resources needed for a cost-effective investment property. A commercial real estate broker could have a field day showing available Colorado lots to potential candidates; the state's scenery and commercial potential speak for themselves.

So, is buying land for sale in Colorado a good investment? It depends on the intended use of the land you'd like to buy, and there are a couple of things you should keep in mind before signing on the dotted line.

How Much Does an Acre of Land Cost in Colorado?

The cost per acre of the lot you purchase will largely depend on the location of your land. For instance, among the recently recorded sales of land in Alamosa County, Colorado, some acreages saw price tags ranging anywhere from $2,700 for 80 acres up to $200,000 for 81.5 acres.

On the other hand, Weld County, Colorado recently saw sale amounts as high as $7,500,000 for 255.8 acres of land, so it's no surprise that prices will vary based on location, proximity to popular attractions and amenities, and other factors. We recommend seeking out an experienced commercial real estate broker to help you find the most affordable lots for your investment needs.

Benefits of Buying Land for Sale in Colorado

Land is one of the best assets you can invest in. It can't be manufactured, almost never loses its value, and may even see its value increase over time when undeveloped. You can purchase land for sale in Colorado, let it sit for a while, then sell it for some potentially large gains.

#1 – Land Leases

Of course, you also have the option of developing your land as you see fit. You can construct investment and other commercial real estate properties on your land. You can design and build the home of your dreams or let someone else in on the fun with a land lease.

But another benefit of purchasing land for sale in Colorado that's specific to the state is the potential for you to lease your land to hunters and farmers: Hunters will always need and want new land to hunt and farmers need it to continue powering the agricultural behemoth that is Colorado. If you do decide to purchase Colorado land for sale with the intent to lease it, you should keep these two markets in mind.

#2 – Expansion Potential

Colorado's total area of land spans about 66.68 million acres. Its landscape biomes are diverse and the state is home to the Rocky Mountains. You can even purchase mountain property for sale in Colorado with great resale potential.

Land in Colorado boasts enormous expansion potential because there's so much of it, and so much of it is adorned by beautiful scenery. Whether the land you buy is sloping or flat, chances are high that you'll be able to find commercial tenants who'd like to use it.

Some Other Things to Consider

Some other things to consider when purchasing Colorado land include:

Tax Advantages: Planning on using your new land in Colorado for farming, hunting, or ranching? You may be able to enjoy unique tax exemptions and give Uncle Sam a little less money. For instance, you don't have to pay property taxes on any agricultural equipment you use to generate monetary profits by working your land or raising/breeding livestock.
Tax Disadvantages: While Colorado rewards its land-owning farmers and hunters, it still places a high fee on vacant land.
Zoning Laws: Some areas of land in Colorado are governed by zoning laws that dictate legal fence height as well as the presence of storage sheds. Investigate the zoning laws of your prospective lots well before you buy.

Always investigate the rules, codes, and tax laws surrounding any piece of land before you commit to buying it.

Browse & List Land for Sale in Colorado on MyEListing.com for Free!

MyEListing.com allows commercial real estate investors and brokers to browse and list commercial real estate completely for free. You can set up customized property notifications and receive alerts when a new lot of land goes up.

Take a look at some of the available lots of land for sale in Colorado or create a new listing!