How To Get Utilities Installed On Your Lot

If you’re new to the land buying process, there are helpful tips to remember before putting forward your best and final offer.

Among one of the most important pieces of advice real estate and land experts will give to buyers is for them to budget for costs that will be used for development and fees, in addition to what you’re likely to spend on the property itself.

Where land is situated will determine development costs, so it’s wise to research before deciding on a particular property. Among one of the major costs that a buyer should never ignore is the price you’re expected to pay to bring in utilities to the property.

Most land purchases are made with the intention of building on them, and one of your responsibilities will be to take on the effort of overseeing the process of utilities development.

Here are some suggestions to help you along the process.

Find Out If The Vacant Lot Has Existing Utilities

A first step will be finding out if the property you’re looking to purchase has utilities. Knowing the street address will make the process simple and as quick as an internet search or a phone call.

This step will help you better understand what costs are anticipated in addition to the land’s purchase price. Keep in mind that rural vacant land may mean a lower fee for installation, as opposed to a more residential area. And if there’s no address associated with the parcel, the county offers GIS maps where you may find out the names of roads, nearby intersections, and addresses.

Power, Water, and Sewer For Your Land

With the property’s address or assessor’s parcel number and GPS coordinates, you’re ready to find out more about whether or not public utilities are available. For water and sewer, reach out to the county’s Planning and Zoning Department or the Building Department to ask if the area is serviced by the public system provider.

Conduct a Google Maps search for your county’s power company name, and simply ask whether power lines exist on the road in front of your lot. If services aren’t provided for the property, the company you called may be able to provide information for other companies that can serve the area. The Planning and Zoning Department will also be able to provide you with companies available in the area.

At this point, most potential land buyers are wondering what will running utilities to land cost? There’s no standard answer, and the cost will largely depend on location and how close the land is to public utility connections.

The costs of utilities can range between $10,000 and more than $30,000, and it’s important to note some cities and power companies could potentially charge more for services. For a more precise cost, local service providers or a local contractor can offer an estimate when public utilities aren’t available.

When estimating the cost of water, most homes receive services through a municipal system. Water services through a municipal system will be the easiest and least expensive way to get water for your property.

If no access to municipal water is available, contact the county and request a connection. In order to do so, you’ll be required to install a hookup to the water main. Calculating the costs of procedures, permits, and requirements, the cost of water to your land may range between a few hundred dollars to upwards of $5,000.

If the land you’re considering is outside of the area of municipal water system service, the other option would be to drill your own well. Note that a well installation may be pricey and require an investment of anywhere from $2,000 to $25,000 depending on the depth of the well.

Sewer or septic tank installation is another cost that will depend on the location of your property, and whether there is access to a municipal sewer main.

Connecting Utilities Requires Patience and Budget Planning

Notwithstanding the process involved in identifying sources for utilities and costs involved, with proper planning, some guidance and a bit of patience, purchasing your very own property is an exciting time for anyone new to land buying.

If you’re looking for quality land for sale in Harlingen, TX, trust the experts at SRC Land to lend their knowledge. We’ll help you find the right place to fit your needs and budget.

Contact SRC Land Now

How Investing in Land Can Benefit Your Taxes

Making the decision to purchase land offers lifetime benefits. The more time you have owning the property, the more your land will appreciate.
But that’s not the only benefit you’ll get out of this worthwhile investment!
As a landowner, you may be eligible for certain tax deductions depending on the property and the purpose it serves, and the land developers at SRC Land want to discuss this a little more in depth for your benefit.

But before we dive in, if you are new to buying land in Harlingen–whether it be for commercial or residential purposes–don’t forget to check out our other blogs that demystify the initial process.

Land Investors Get Deductions

As someone who invests in land, you are considered someone with hopes that it will ring in appreciation and raise in value. Whether you decide to buy raw land or property that you intend on renting out for income, deductions should be available.

  1. Interest Deduction
    The same process someone would follow to acquire a loan to finance a home applies to investors who might need to borrow money to buy their land. Interest will add up based on how many years you own and pay for the property.
    You can be eligible for deductions on interest when choosing to file taxes as an itemized personal deduction. A yearly deduction or “net investment income” is limited to the difference between the annual cost of property tax costs and investment expenses (not including interest expenses).
    If you own the investment land by yourself, you may also wish to get back interest deductions on IRS Schedule E.
  2. Property Tax Deduction
    Those who have invested in property with the intent of building a home but have not yet done so may not be able to claim interest and property taxes unless they have a loan ready for the process of preconstruction.
    Vacant land owners should ensure that their loan is secured before filing their taxes to offer some security being placed into their future potential home. If the loan for home building is voided, then vacant landowners may not request property taxes.
    It is in your best interest to have tax deductions for “raw land” filed as a personal itemized deduction under Schedule A for those that have a loan prepared.
  3. Rental Property Deductions
    Property owners may take deductions if they happen to rent out the property by filing under IRS Schedule E along with their corporate tax return.
    Depreciation deductions can be sought out if you rent your investment property for buildings like apartment-style homes or even commercial businesses. These kinds of deductions are applicable for whatever is affected by the renter.
    These deductions may also apply for property improvements which are being prepared for commercial usage, including developing streets on the land for businesses to use.

Capital Gains and Reduced Tax Rates

Capital gains are the profits that investors make when selling their property, whether it be residential, commercial, or industrial property. Capital gains provide a reduced tax rate contrasted with average income tax.

There are primarily two ways this is taxed:

  • Short-term: These gains on property are held in less than a year. There are no special tax benefits that come from short-term gains since it can fall 10% to 37% depending on your income.
  • Long-term: These gains come from property that was upheld for more than a year. This is mostly relative to rental properties and guarantees a significantly lower tax rate when compared to short-term gains.

As an investor, you want to make sure you have leverage on long-term capital gains. Not only will you have a decreased tax rate, but you can also take advantage of deductions acquired over the property-ownership period to reduce the taxable estimate.

How Deductions are Different for Real Estate Dealers

Individuals who are investing in land for the purpose of re-selling at a higher rate are also able to apply for deductions. They would be able to access the same deductions that an investor would be, such as interest and taxes deductions. As a sole proprietor, you would file under IRS Schedule C. The only thing you wouldn’t be eligible for is depreciation bills.

Investing in Land Is a Worthwhile Investment With SRC Land

Even though you will be expected to pay off taxes when you buy land, it is a worthwhile investment due to the simple fact that land can increase in value as time progresses, or you can even make an influx of income while renting it out.
If you have an interest in investing in a property, remember that all forms of land purchasers can apply to some degree of deduction on tax and interest.
Find the right investment for you when you call SRC Land for more information on our reasonably priced properties for sale in Harlingen.

Find the right investment for you when you call SRC Land for more information on our reasonably priced properties for sale in Harlingen.

Contact SRC Land Now

It’s Tax Season! Why Reinvesting Your Refund On Land Is a Smart Move

If you’re fortunate enough to live in South Texas, you know spring is one of the best times of year to enjoy all the great things the region offers, including acres of sprawling land, limitless potential for creating a bright and happy future, and great outdoor amenities for hobbyists and nature lovers.

Since April is tax season, and as many Americans anticipate refunds, why not consider putting your hard-earned money to work for you and invest in land in beautiful and thriving Harlingen, TX? If you’re like most Texans, you’ve probably taken a road trip once or twice in your life and spotted great land opportunities, sometimes away from the hustle and bustle of the busy cities.

How many times have you dreamt of owning property to start living a life of leisure and comfort, away from many of the big city distractions? The Rio Grande Valley offers incredible land opportunities, and below we’ll discuss why investing your tax return on a land purchase could be one of the smartest moves you make.

Vacant Land Is One of the Most Overlooked Financial Strategies Around

While you’ve probably spent time dreaming about owning land, chances are if you haven’t already purchased, it’s probably because you have questions about the process.

Ask any financial expert and they’ll tell you vacant land is one of the most overlooked real estate investments in the world. Tracts of land actually have the potential to produce serious cash flow for their owners.

One of the top reasons to consider purchasing raw land is that if you don’t have plans to develop it immediately, there’s really nothing that needs to be done to it. Once you’ve found the property you’ve always wanted, you have time to map out your future and earning potential.

Whether you choose to buy and build on the lot for your family, or as an investment property to earn income down the road, the beauty of land buying is you always have control of your future.

Seller Financing Opens the Door to Unlimited Income Potential

For many, purchasing a home can be an overwhelming endeavor. And when it comes to buying land, many of those same buyers could be hesitant because of the ways traditional banks do business.

On the other hand, a less than strong credit history could be the only obstacle standing in the way of your future.

Seller financing is a great way to enter into the real estate market with easy and affordable terms that are an ideal solution for those who have poor or bad credit. Land experts can walk you through the seller finance process, and potential landowners also have the ability to have a say in negotiating the terms.

Harlingen, TX, Offers the Best of South Texas

It goes without saying that owning land is an exciting opportunity and one that can pave the way to the life you’ve always dreamt of.

If you have your heart set on enjoying great climate, friendly neighbors, and above-average schools for your kids, look no further than Harlingen, TX! With a population well under 100,000, Harlingen offers small-town charm with the appeal of big city conveniences.

The affordable cost of living and the sparse suburban feel means you can experience a sense of community, while still enjoying your privacy. How many places can you think of that allows you to experience the best of both worlds?

With a strong sense of culture and heritage, Harlingen is an ideal place to call home and raise a family. Just 20 miles away from the Gulf of Mexico, and a stone’s throw from Matamoros, living in Harlingen is a passport to the cuisine, the artisans, and the culture of Mexico.

Affordable Lots and the Trusted Land Experts at SRC Land

For more than 20 years, SRC Land has given people reason to dream. Offering affordable seller finance land opportunities, we make the process of land buying simple and reasonable for everyone, regardless of poor or bad credit.

Put Your Income Tax Refund To Smart Use and Invest In Quality, Affordable Land in Harlingen with SRC Land!

Contact SRC Land Now

Buying Land for the First Time? Here’s Where to Start.

Thinking about the things you and your family need in a dream home should be centered on excitement and enthusiasm. If you find yourself stressing about things like nearby neighbors, HOA concerns, or even the amount of space you’ll need to grow your family, buying land will likely be the smartest solution.

Whether you’re looking at lots in Harlingen to build your next home, or want to secure the ideal property for future investment, the process of buying land is a great opportunity to reap big rewards now and in the future. But as with any major purchase, going into it well-informed can help you avoid headaches and hiccups in the process.

What New Land Buyers Need to Know Before Purchasing Land

Now that you’ve decided to buy land, it’s important to understand the scope of your project will depend on various factors. Establishing and sticking to a budget will likely help the process flow more easily, and if you’re buying land in order to build your home, you’ll need to consider all the working parts that will be involved to make your vision a reality.

Take into account the fees, permits, the cost of purchasing desired land, the cost to build your house, and the cost for making adjustments to the land to access water and utilities, if not already included in the lot. These costs will help give you a realistic sense of your budget.

In addition, you’ll want to find an area where zoning laws won’t pose a challenge to land buying for your dream home. Some areas may include restrictive zoning rules, including building size and what types of homes can be built on the site.

Then, you’ll want to look at the land’s soil and elevation to ensure it won’t prevent you from building, digging a well (if needed), or running electricity and natural gas. Lastly, making sure the land is free of environmental problems or liens on the property are concerns that may need to be addressed, so hiring professionals can help you assess the issues you may not be familiar with.

Finding the Right Land in Harlingen and the RGV Region

If you’re looking to settle down in an area that offers a range of amenities and continual growth, you’ve probably already concluded Harlingen has much to offer. Working with a trusted land expert can be a big help in your search for land for sale in Harlingen and neighboring communities.

Land development companies like SRC Land in Harlingen will offer a range of options for you to choose from, while helping you each step of the way in determining what tracts of land will make the most financial sense for you and your family.

Land experts such as SRC Land make the buying process simple by offering financing options to fit your needs and budget. You’ll also have the chance to take advantage of seller-financing options if your credit history is less than perfect.

Securing a Land Mortgage

If you’re not in a position to purchase your land with cash, financing will offer the next best solution. Be advised that not all land development companies are created equal and you may be turned away. If you have experienced challenges in trying to secure financing from traditional lenders, seller-financing services can simplify the land buying process.

Seller-finance terms take away the worry of looking to a bank loan to fund your goals, and it also adds in quite a few additional benefits. For instance, you’d be able to save some money on closing expenses, have a say on the conditions of the loan, and pass on the necessity to qualify with a loan underwriter.

With all kinds of lots in Harlingen, Texas, SRC Land has no problem in helping you find exactly what you’re looking for, all at a price you can afford.

SRC Land offers new land buyers affordable lots in Harlingen. Learn more about our easy seller-financing options and how you can be on your way to owning your dream property today!

Contact SRC Land Now