Investing in real estate is one of the ways to increase your money, but for that to happen, you have to find the best cheap land for sale. Land is not an investment that depreciates, so investing in some will not leave you disappointed. But there’s more to it than just buying the first cheap for-sale-by-owner land you find. There are a few things you need to know first, before you decide that land is worth it.

The first rule is always location. It is difficult to find cheap land in an urban area that has already grown enormously. But this does not mean that you choose a piece of land that is located in an area without good road access. It’s all about taking your time and finding the right listing with cheap land for sale that is conveniently located. At a minimum, make sure the land you’re interested in is in a location with potential for growth. Also consider the geography of the area and the climate. If it gets too hot or too cold in some seasons, it may not be a worthwhile purchase, even more so if you plan to build on land.

The second factor to consider is the profitability of any cheap farm or hunting ground for sale. While land is unlikely to depreciate, it may take time before it generates any profit. You have to find land in an area that is likely to grow, because growth will be associated with an increase in the price of land. Even if you don’t intend to sell right away, it’s reassuring to know that you can make a handsome profit by selling the cheap land you invest in.

Stick to proven markets, rather than buying cheap farmland for sale in an area that is barely known. It doesn’t make much sense when you buy land in the countryside, where you know it will be decades before the area grows. Instead, buy land in an area that already has a spark of growth, before other people jump on the opportunity.

When buying cheap land for sale, keep in mind that the seller will have a sales pitch ready and will try to get you to buy the land. But take some time and think about the purchase decision. If you have doubts, don’t ignore them. In any case, you can always look elsewhere.