If you are on the lookout for a good investment, you should seriously consider investing in vacant land. Most people don’t understand why land is a good investment, others just don’t give it the credit it deserves as an investment. Those who wonder why land is a good investment ask questions like:
What is the revenue from vacant land?
What does it do? He is right there.
What’s exciting about that? It’s boring.
The reality is that land investments are very good, even when it comes to cash flow. In fact, land is a much more flexible investment than most people realize. And the fact that it does nothing is a huge plus; as you will soon understand why. Plus, what’s so boring about an investment that can make you money?
Top 10 reasons why you should invest in land
1. No action is required on your part
The land can stay as it is – you don’t need to renovate it, repair it or do any construction for it to retain its value. You just need to know that someone else might want to build something on it or own it as is and you’re set. So, as long as you own land that someone would pay for, you have made the right land investment.
2. Owners of vacant land are more likely to sell
Selling land is much easier for many people than selling other types of property since they don’t live there. So there is no sentimental reason to keep it when it becomes clear that selling it would be of value. For this reason, sellers of vacant land are also more likely to offer a better price because they do not lose any source of income. Some keep the ground vacant because they don’t know how to develop it further, so letting go does indeed seem advantageous.
3. Your commitment is not required
Let’s compare owning land to owning a rental property. The building would require you to deal with tenants, plumbing, and other pesky issues of owning a building. But a vacant lot does not ask you anything. Buildings, on the other hand, can have mind-boggling requirements that can only be ignored at the risk of getting into legal trouble.
4. Buying land is easy
When buying other types of property, you usually have to deal with banks and mortgage companies. But with the land, you will immediately get your hands on great real estate and without the need to borrow money from financial institutions. The fact that land does not require as large a financial investment as other types of property is a huge advantage.
5. You will face a lot less competition
Many regular real estate investments require you to face strong competition. This can get exhausting as you will lose many deals even if you win some. With vacant land, you can avoid many of these challenges because competition for vacant land is virtually non-existent.
6. You don’t need inspections
Any good real estate investor will often need to see the building they are buying before paying for it. In fact, a lot of information may be required to ensure the right decision is made even after viewing the property. But vacant land can be purchased without even having to see it in person. You can do everything online because there are no structures to manage when making your purchase.
7. Seller Financing Can Dramatically Increase Your Earning Potential
Many banks do not offer financing for the purchase of land. And yet, this convenience can motivate many people to become owners of vacant land. Thus, if you manage to offer financing to your buyers, you will be able to resell your land at much higher prices and considerably increase your potential income.
8. Owning land is cheap in the long run
With no insurance, utility bills, mortgages, and other costs of owning a property to manage, owning land is pretty cheap. Even property taxes on vacant land are low, making land the perfect investment if you don’t want it all.
9. It gives you less to worry about
The land is very stable as an investment. It does not experience issues such as wear and tear, depreciation, theft or destruction. All of this, plus the fact that it is very inexpensive, makes owning land such a smart decision.
10. It is fixed in quantity
Many people forget that the supply of land is fixed, which means that its value can only increase over time. The benefits of owning land are multiplied when you buy the land before a huge development project comes along, such as bungalow plots, farmland, NA residential plots, and similar projects. For this reason, land can be very valuable, even as an investment vehicle for retirement.
Land investment is very lucrative
With land you get a lot of passive income. Most real estate investments cannot provide you with this convenience. Even beginners can do a great job investing when vacant land is the investment of choice because it doesn’t require a lot of expertise or ongoing involvement.