While it’s true that “there’s no such thing as bad land,” is Oklahoma land a good investment? The state’s steady population and economic growth has driven development demand in many areas. As a result, property values have been on the rise. However, the right parcel can still be purchased for a reasonable price. And with low property taxes and reasonable mortgage rates, owning land offers investors a unique opportunity to diversify their portfolios.
As a general rule, the best is Oklahoma land a good investment in is rural land near growing communities where commercial developers and home builders are looking to expand. This is because these types of development plays generate high demand and strong appreciation for raw land over time. In recent years, this trend has been particularly pronounced in regions of the state like Oklahoma City, Tulsa and Norman.
However, assessing the potential of any specific piece of Oklahoma real estate requires a thorough analysis of both market trends and local community factors. This includes evaluating factors like land use restrictions, building codes, water rights administration, tax provisions that reduce incentives post-purchase and other complexities that can impact the actual cost of owning the property.
Some of these complexities can be compounded by climate-related factors that can affect the value and usability of land in the state. For example, despite its central location in the nation, Oklahoma has an exceptionally varied climate that can cause problems ranging from icy winter weather to severe spring storms and tornado outbreaks. These events can damage both the physical integrity of the land itself and improvements like buildings, roads, fences and other infrastructure.
While these factors may not completely deter investment in raw land, they can significantly influence the return on an investment and should be considered carefully. As a result, it’s always a good idea to partner with qualified professionals who specialize in the purchase and sale of land. These specialists can provide valuable guidance, support due diligence and assist in navigating complex regulations that could impact the cost and potential ROI of an intended land use case.
There are also many opportunities to generate income through the leasing of Oklahoma land for activities like hunting, agriculture, livestock, mining and oil/gas. The fertile soils in the state are well-suited for farming and ranching, and quality farmland can generate strong annual lease payments. In addition, the state’s abundant wildlife and outdoor recreational opportunities like hunting, birdwatching, off-roading and camping can yield significant income streams through rentals. The state also boasts a robust and lucrative energy sector, making it an excellent location for natural gas and oil drilling.