Land for sale in Arizona has become a popular investment, following the surge in home values in many areas of the state.

Investors who saw the growth potential - and invested a few years ago, have made some huge profits. However, as new inexperienced buyers enter the fray, have the big gains come to end - or are there more to come?

Let's find out what the profit potential is for from land for sale in Arizona:

Land for sale is dominated by key players - who often hold large swathes that smaller investors want to buy - and they're not selling it cheaply anymore - prices asked, and received tend to be quite high.

Not only are prices up - they're expensive now - and the upside isn't going to be what it was over the last 5 years.

Arizona land for sale tends to be more speculative than buying developed properties. That makes good Arizona land lots harder to value - and makes financing more difficult, if buyers want to pursue this option.

Some lenders - including most of Arizona's largest banks, simply don't give land loans to non-commercial buyers - except those who've selected land lots with sewer lines, road access, and other infrastructure in place.

"Ideal borrowers hold for 12 to 18 months while designing their dream homes," said Mike Downing, a senior vice president at Chase Home Finance in Phoenix. "As for raw land, where people are looking for the next big opportunity to flip, we don't participate in that."

Hard lender terms encourage seller financing - and of course, cash deals. This can put raw-land purchases out of the reach of middle-class buyers - especially since land doesn't generate any Income ? it relies on development to bank a profit.

Buyers of Arizona land in lots, or parcels of 5 to 10-acre can pay up to $200,000, 10 years ago, you could buy for around $45,000."

The phoenix market continues to attract investors - but how good an investment is the land? In addition, will prices really hit the highs that people expect - with the economy likely to slow in the foreseeable future? Can investors really make 50% - maybe, but there are problems ahead.

Raw land, not directly in the path of development is a blank canvas - whose use and value can be hard to predict.

Phoenix still has room to grow - to the southeast, and west - but with a good supply of land in this area, land may be difficult to sell quickly - and at a profit.

The history of land for sale in Arizona points to holding longer term. Land can generate excellent returns longer term ? and in Arizona, this should continue. Anyone looking to become wealthy quickly from Arizona land may find it hard to do from now on.

Arizona Land Prices are fuelling another Market

As Arizona land prices look as if they'll tail off, this is driving investors to look at other markets. One market that appeals to many Americans is Costa Rica. With Costa Rica being just a three-hour flight away, and with land prices up to 70% cheaper than in Arizona ? Costa Rican land prices are booming - and prices will continue to boom.

In Costa Rica, many investors are making 100% profits in just a year! This is one market that doesn't look like slowing down in terms of growth. Investments are hitting record levels - as Americans flock to this country for the good life.

The baby boomer generation is realizing they must take steps to preserve their lifestyle - and that's why the trend in Costa Rica will continue - and land prices will continue to soar.

Costa Rica is stable, has good ties with the US, buying land is easy - and you get the same rights as the Costa Rican citizens themselves. Throw in tax advantages, and Costa Rica land for sale offers cheaper lots - and more growth potential, than Arizona land for sale.

If you've been considering buying Arizona land, but you're not prepared to hold the land long term, but fancy some quick double digit profits - head south - to Costa Rica!

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