3 Surprising Reasons buying Land is a Solid Investment

All too often we hear that buying real estate is a shaky investment. While this can be true of anything, it is not a reason to miss out on the many advantages of investing in land. Consider the following reasons that land is actually more of a solid investment than you would think.

1. There is a Finite Supply of Land.

Unlike many other products or resources, there is only so much land on the planet to go around. There is no doubt that the global population continues to expand, so buying land now could mean that you are getting your hands on a prime resource that will be in very high demand in the future. If you are able to find a location to purchase that is in a growing area, the demand for your asset will be even stronger in the short term. While it can be tempting to buy and sell land at the first opportunity to turn a quick profit, the real benefit of owning land is using it as a longer term investment so that it has time to fully appreciate in value before you cash out.

2. Owning Land is Relatively Inexpensive.

Aside from the initial purchase price of a plot of land, it is relatively inexpensive to own and maintain land in the long run. If you do not buy land with an existing structure, there is no mortgage payment to worry about or other building maintenance costs. You will need to be mindful of property taxes, but they can be easily managed if you purchase land in the right area. If you are low on time and additional resources, an investment in land is ideal because it takes very little energy to preserve. You can simply sit back and watch the changes in the value over time for the most opportune moment to sell.

3. Sellers are Motivated to Sell Quickly.

Unlike dealing with a seller of a house, vacant landowners are typically highly motivated to sell their land as quickly as possible. Especially if the land has been vacant for quite some time, sellers are generally happy to unload the property so that they do not need to pay a property tax on land they are no longer interested in. In addition, there are far less investors in raw land than houses. This means that you will have less competition to bid against in negotiating the purchase price. You will also be less pressured to move quickly to strike a deal that you want more time to consider. Raw land is simply a less popular investment than the traditional housing market, so you can set your own pace.

Comments are closed.