If you are considering a land purchase, there is a good chance you are also considering how you will pay for it. First consideration is using cash to purchase your property. There are many benefits of a cash purchase of course. Some benefits to this payment method include your ability to make a competitive offer and a quicker sale to closing time. Also, when the transaction is complete, you will own your land free and clear without debt. Now let us explore some reasons why financing may be a better fit.
1. Save Your Cash for Improvements – Consider what you will do with your land once you take possession. Are you planning to build a house or barndominium? It might be wise not to spend all your cash up front.
2. Conserve Your Buying Power – If this is the only land you will ever purchase then cash might be the way to go. However, if you are looking to purchase additional tracts then you may want to hold on to that cash for buying power later.
3. Maintain Your Savings – Purchasing land requires a lot of capital investment. Once the cash is spent on a land purchase its not as easy to liquidate if needed in a hurry.
There are other options for land purchase financing beyond traditional bank loans. If you are a Texas Veteran, you have a great opportunity through the Texas Veteran Loan Board as a financing option. Considering these options while planning your land purchase will ensure you gain the best value for your investment. Click Here are other tips for buying land in Texas.