Top 10 Reasons Why You Should Invest in Land
Posted On June 29, 2023
If you are looking 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 income does the vacant land have?
What are you doing? She just sits there.
What’s exciting? It’s boring.
The reality is that investments in land are very good, even in terms of cash flow. In fact, land is much more flexible as an investment than most people realize. And the fact that it doesn’t do anything is a huge plus; as you will soon find out why. Besides, what’s so boring about an investment that can make money?
Top 10 Reasons Why You Should Invest in Land
1. No action is required on your part
Land can stay as is: it doesn’t need to be renovated, repaired, or built to keep its value. You just need to know that someone else may want to build something on top of it or own it as is and go. So as long as you own land someone would pay for, you have made the right land investment.
2. Vacant land owners are more willing to sell
Selling land is much easier for many people than selling other types of property, since they don’t live on it. Therefore, there are no sentimental reasons to hold on to it when it becomes clear that selling it would have value. For this reason, vacant land sellers are more likely to offer a better price because they are not losing any revenue stream. Some leave the land vacant because they don’t know how to develop it further, so leaving it seems advantageous.
3. Your commitment is not required
Let’s compare owning land with owning a rental building. The building will require you to take care of tenants, plumbing, and other annoying issues that come with owning a building. But the wasteland demands nothing of you. Buildings, on the other hand, can have mind-boggling demands 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 often have to deal with banks and mortgage companies. But with land, you’ll have great real estate in your hands right away 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 great advantage.
5. You will face much less competition
Many regular real estate investments require you to face a lot of competition. This can get exhausting as you will lose a lot of deals even when you win some. With vacant land, you can avoid many of these challenges because competition for vacant land is virtually non-existent.
6. No need for inspections
Any good real estate investor will often require seeing the building they are buying before paying for it. In fact, a lot of information may be necessary to ensure that the right decision is made even after viewing the property. But vacant lots can be bought without even having to see them in person. You can do everything online because there are no structures to deal with when you make your purchase.
7. Seller financing can greatly increase your earning potential
Many banks will not offer financing for the purchase of land. And yet, this convenience can motivate many people to own vacant land. Therefore, if you can offer financing to your buyers, you can sell your land at much higher prices and greatly increase your potential income.
8. Owning land is cheap in the long run
Without insurance, utility bills, mortgages, and other costs associated with owning property, owning land is pretty cheap. Even vacant land property taxes are low, making land the perfect investment if you don’t want all this hassle.
9. It gives you less to worry about.
The land is very stable as an investment. You do not experience problems such as wear, depreciation, theft or destruction. All this, in addition to the fact that it is very cheap, makes owning a land a very smart decision.
10. It is fixed in quantity
Many people forget that the supply of land is fixed, and this means that its value can only grow over time. The benefits of owning land are multiplied when you purchase the land before a large development project comes along, such as bungalow plots, agricultural land, NA residential parcels, and similar projects. For this reason, land can be very valuable, even as a retirement investment vehicle.
Investing in land is very lucrative
With land, you get a lot of passive income. Most real estate investments cannot offer you this convenience. Even novices can do a great job of investing when vacant land is the investment of choice, as it doesn’t demand much experience or ongoing involvement.