Vermont’s natural beauty, top-notch academic institutions and a location on the thriving East Coast foster a unique lifestyle that attracts visitors and long-term residents alike. These attributes also create a favorable investing environment for real estate investors looking to add the state’s picturesque landscapes, historic towns and burgeoning economy to their portfolios. However, like any other investment opportunity, investing in Vermont land requires careful due diligence and an understanding of the risks associated with owning property in the state.
In addition to the state’s pristine landscapes, invest in Vermont land leans heavily on tourism, agriculture and food production for economic activity, driving consistent interest in local real estate. As a result, property values have surged in recent years, but savvy land investors know that location and market timing remain paramount to investment returns. Choice acreage near the state’s most vibrant communities continues to appreciate the fastest while markets moderate more rapidly further out.
A solid investment strategy begins with a clear plan of action that defines the types of properties you intend to invest in. Then, you must understand the state’s land investment laws, taxes and fees to avoid unexpected expenses that can eat into your profits. To further ensure your plan succeeds, carefully assess the zoning and building requirements of the areas you plan to invest in before making a purchase.
To maximize your return on investment, you must also assess the cosmetic and structural integrity of the properties you’re considering. Look for signs of water damage, mold, termite infestations and other structural problems. You should also check that the properties’ utilities are in working order, and evaluate their ability to generate a steady income stream. Finally, make sure to have your investments insured against the potential damage caused by natural disasters or renters.
The best way to find profitable Vermont land is to focus locally and gain an intimate understanding of the hyperlocal market conditions impacting deal flow, financing, regulations and renter demand in specific towns and counties. The right local team of vetted and trustworthy professionals like attorneys, investors clubs and hard money lenders will prove invaluable in navigating state and municipal law.
Vermont’s quaint small towns, booming local food movement and booming outdoor recreation opportunities fuel strong demand for vacation homes and short-term rental properties. This creates lucrative investment opportunities for investors who target resort towns, lakefront cabins and mountaintop condos in the peak tourist seasons. Rural regions that are farther from major metro centers, however, tend to see higher vacancy rates and slower 12-month rental income. This requires careful evaluation of your 12-month cash flow and risk tolerance before committing to a purchase.