If you are on the prowl for a good investment, you should seriously consider investing in vacant land. Most people don’t get why land is a good investment, others simply 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 vacant land have?
What does it do? It just sits there.
What’s exciting about it? It’s boring.
The reality is that land investments are very good, even with regards to cash flow. In fact, the land is a lot more flexible as an investment than most people think. And the fact that it does nothing is a huge plus; as you will soon realize why. Also, what is boring about an investment that can you make money?
Top 10 Reasons Why You Should Be Investing in Land
1. No action is Required from You
Land can stay the way it is – you don’t need to renovate, repair or do constructions on it to make it retain its value. You just need to know that someone else can desire to build something on it or to own it as it is and you are set. So, as long as you own a piece of land someone would pay for, you have made the right land investment.
2. Owners of Vacant Land are More Predisposed to Selling
Selling land is a lot easier for many people than selling other kinds of the property since they don’t live on it. There are therefore no sentimental reasons to hold on to it when it becomes apparent 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 are not losing out any income source. Some keep the land vacant because they don’t know how to develop it further, so letting go of it actually seems advantageous.
3. Your Engagement is Not Required
Let’s compare owning land to owning a rental building. The building would require you to deal with the tenants, plumbing, and other pesky issues that come with having a building. But vacant land does not demand anything from 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 kinds of property, you usually have to deal with banks and mortgage companies. But with the land, you will get your hands on great real estate property straight away and without the need to borrow money from financial institutions. The fact that land does not require as huge a financial investment as other kinds of property is a huge plus.
5. You will Deal with Much Less Competition
Many regular property investments require you to deal with lots of competition. This can get exhausting as you will lose out on many deals even as you win some. With vacant land, you can avoid many of these challenges because the competition for vacant land is practically non-existent.
6. You Don’t Need Inspections
Any good property 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 the right decision is made even after seeing 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 deal with as you make your purchase.
7. Seller Financing can Grow Your Income Potential a Great Deal
Many banks will not offer to finance for land purchases. And yet, this convenience can motivate many people to own a vacant piece of land. So, if you can manage to offer your buyers financing, you can sell your plots of land at much higher prices and grow your potential income considerably.
8. Owning Land is Cheap over the Long Term
With no insurance, utility bills, mortgages, and other costs related to owning a property to deal with, owning land are pretty cheap. Even the property taxes on vacant land are low, which makes land the perfect investment if you don’t want all this bother.
9. It Gives you Fewer Things to Worry about
The land is very stable as an investment. It does not experience issues like wear, depreciation, theft or destruction. All this, in addition to the fact that it is very cheap, makes owning land such a smart decision.
10. It is Fixed in Quantity
Many people forget that land is fixed in supply, and this means that its value can only grow over time. The benefits of owning land are multiplied when you buy the land before a huge development project comes by such as bungalow plots, agricultural land, residential NA plots, and similar projects come along. For this reason, land can be quite valuable, even as a retirement investment vehicle.
Land Investment is Very Lucrative
With land, you get lots of passive income. Most real estate investments cannot offer you this convenience. Even newbies can do a great job of investing when vacant land is the investment of choice since it does not demand much expertise or ongoing involvement.