There are plenty of options for real estate investment out there and if you are in a position to think about the real estate options that you have in front of you, you have some thinking to do.
Your choices are about more than a house or apartment when it comes to sorting out real estate investments, especially as you can consider that you can invest in land, too! Investing in land is a far more niche, more unique opportunity than investing in a house, especially as the demand for land hasn’t stopped rising for years.
If you’re not sure about whether you should invest in land, look here and see what’s on offer to you. You can choose to invest in land to create a new business space, or you can invest in land to build on much later. Some people even invest in land so that they can hang on to it and sell it to private investors later on. The point is that there are plenty of reasons that you should invest in land, and we’ve got ten of them for you below.
1. The Returns.
Investing in land may feel expensive, but it’s something that is highly profitable so the cost is usually worth it. The value of land trends upwards over time and if the land itself is in an area that’s considered to be affluent, the growth of the investment can be up to 20% every year. The return on this would be more than attractive – enough to get you to put in an offer on a piece of great land, right?
2. It’s Cheap
Okay, so some pieces of land are more expensive than others – that happens, right? Well, the investment in land is relatively cheap and you can buy land with a small capital. This will help you to avoid buying with the bank. Some people choose to buy land because of how cheap it is, even if it’s more expensive to build later on. The best thing about investing in land on its own is that it can help you to get started on the path to financial security. You can bet that as the land gains value, you can sell it later and for more than you paid for it.
3. No Wear & Tear
Land doesn’t have the same wear and tear worries as a house or office block would. Buying a house and renting it takes up a lot of time, effort and money, and it can lead to your home being run down and worth less over time. Land? Well, land doesn’t have to worry about damaged pipes and deteriorated paint. You don’t have to worry about cleaning up after tenants, either!
4. It’s Profitable Long Term
Did you know that land generates returns within around five years? Most people aren’t aware of this, and those who are are wary that it will take too long. The thing is, the returns make the wait worth it, and you should also consider the initial money you spend – it’s minimal compared to what you could be getting back in half a decade of ownership. This makes the purchase a safe one when it comes to profitability.
5. Your Money Will Work For You
Land is one of the more uncomplicated businesses in life. You can literally just buy land and then wait for it to mature over time. There’s nothing that you need to do with it for it to earn money for you – just sit and wait! It’s the easiest business type as you don’t have to do a thing about it. Your land will generate money for you and you don’t have to lift a finger for it.
6. You Don’t Even Have To Live Close
Land anywhere in your country is yours to buy if it’s up for sale. You don’t have to visit the land to close the deal, and you don’t have to worry about scoping it out if you want to buy remotely. You should always make sure that you do your research into the real estate group that’s selling. You may not have to go down and see the land, but you should be ensuring that the right company is selling it and that it’s in the right location. You should also ensure that you get the right sales contract and the deed 100%! Both will require your signature.
7. There’s No Emotional Bond
Land is a business, where houses have an emotional contract attached to it. You make a house a home; you don’t do this for land unless you build on it later, which is something you should consider! Detachment from the land will ensure that you can make convenient sales choices later on.
8. No Added Costs.
One of the best reasons to invest in land is the lack of additional expenses you would have to worry about. No bills to pay, low property taxes and more, you won’t have to pour much time or money into a land purchase in the same way that you would a house purchase. Your ability to save money goes up exponentially when you buy land.
9. Little Competition
Compared to buildings and houses, land comes with a lot less competition. You want to be able to buy and sell property in the planned time and at the right price, and the biggest factor here is the level of competition that you have in front of you. Most investors look for buildings and houses, so you can snap up land for much less.
10 It’s Finite
No one is making more land to get ready for sale, which is why you may be asked to sell up later as someone wants to buy from you. Land is limited, so you will be owning a one of a kind product and most people don’t get the chance to do this. Your purchase of land can make a big difference to your portfolio, so start researching ASAP to learn what you can about it!