If you’re thinking about investing in real estate, the brick and mortar model could be the first thing that comes to mind. Most people will overlook the buying of land as a real estate investment alternative. With land, you have limitless opportunities for what you can do with it. There is a misconception that land doesn’t appreciate in value compared to property. This is not only misleading but prevents people that would have otherwise invested in land to have second thoughts. According to statistics, nearly 90% of millionaires achieved success because of real estate. Here are some of the reasons why you should buy land as a real estate investment.
Land can be used for a couple of things. Even if you’ll not be constructing a house, you could turn it into a ranch depending on the size. You have the option of renting, developing, or even reselling the land at a future date. There are people that will buy land purely for speculative purposes. If you’re looking to start farming, you can check out ranch real estate companies that can help in identifying and purchasing the land.
It Doesn’t Depreciate
This is perhaps one of the reasons why anyone would want to invest in land. This makes it a lucrative proposition for anyone that is looking to diversify their investment portfolio. The reason why land can’t depreciate in value is that it is not possible to destroy it. When you decide to invest in land, you can only expect it to appreciate in value.
You Don’t Need to Do Anything
When you buy land, whatever you do with it will be up to you. You can let it sit for a couple of years if you’re not in a hurry to develop or sell it. This is not true for other forms of real estate investments. When you buy a house or a building, you may need to do some renovations before it is attractive enough. There is also the hassle of looking for tenants and ongoing maintenance which could be a stressful undertaking. The only thing you’ll need to know is if the land is suitable for building and that will mean that the battle is already won.
If you’ve been buying property for a while, you’re probably aware of how stiff the competition can get with every property that is on the market. In the world of land investing, there will be little to no competition to deal with. The majority of real estate investors will be stuck on houses and buildings and will give very little thought to raw land investing. Since they don’t understand the superior benefits that raw land investing presents, they’d rather stick to what they know.
Owning land will not come with the expenses that are associated with other forms of real estate. There are no utility bills to think about and you’ll be expected to pay fewer taxes because the land is not being utilized. You’ll have all the time in the world to decide what to do with a piece of land with no bills to worry about.
Easy to Sell
When you decide to sell your land, you’ll be glad to know that there will be a couple of options. This is because there are no complications will the transaction process and buyers can immediately take possession of the property once the deal is complete. The process is generally a lot easier compared to taking possession of a building.
Opportunity To Build What You Want
If you’re buying to build a home, you will have several options worth exploring. You get to decide the style and design of the house. When you buy a home, you’ll have no other option but to work with what is available. When you buy property from a developer, it is likely to lack the unique touch which makes it attractive to the buyer. There is no reason why you should be spending more money to upgrade your home when you can customize it from scratch.
Even though buying land will not be the first thing that comes to mind when thinking about investment opportunities, is definitely worth the try. There is not a lot of involvement that is needed from your end once you’ve made the purchase. The fact that there is little competition means you can get amazing deals provided you’re willing to go the extra mile when it comes to doing research and assessing the properties.