Top 10 reasons why you should invest in land
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 wondering why land is a good investment ask questions like:
What income does the vacant lot have?
What does? It just stays there.
What’s so exciting about it? It’s boring.
The reality is that land investments are very good, even when it comes to cash flow. In fact, land is much more flexible as an investment than most people think. And the fact that you don’t do anything is a great advantage; as soon you will realize why. Also, what’s so boring about an investment that you can make money with?
Top 10 reasons why you should invest in land
1. No action is required on your part
Land can remain as is, it is not necessary to renovate, repair or build on it to retain its value. You just need to know that someone else may want to build something on it or own it as is and you are ready. So as long as you own land that someone would pay for, you’ve 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 do not live in it. Therefore, there are no sentimental reasons to cling to it when it becomes apparent that selling it would be valuable. For this reason, sellers of vacant land are also more likely to offer a better price because they are not losing any source of income. Some keep the land vacant because they don’t know how to develop it further, so leaving it actually seems like an advantage.
3. Your commitment is not required
Let’s compare ownership of land to ownership of a rental building. The building would require you to take care of the tenants, plumbing, and other annoying issues that owning a building brings. But the vacant lots do not demand anything of you. Buildings, on the other hand, can have mind-boggling lawsuits that can only be ignored at the risk of getting into legal trouble.
4. Buying land is easy
When buying another type of property, you usually have to negotiate with banks and mortgage companies. But with land, you’ll get great real estate in your hands right away, 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 deal with much less competition
Many regular real estate investments require you to face a lot of competition. This can be exhausting as you will lose many offers even if you win a few. With vacant lots, you can avoid many of these challenges because competition for vacant lots is virtually non-existent.
6. No need for 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 that the right decision is made even after viewing the property. But vacant lots can be purchased without even having to see them in person. You can do everything online because there are no structures to deal with while making your purchase.
7. Seller financing can increase your earning potential in a great way
Many banks will not offer to finance the purchase of land. And yet this convenience can motivate many people to own a vacant lot. So if you can offer financing to your buyers, you can sell your plots at much higher prices and greatly increase your potential income.
8. Owning land is cheap in the long run
With no insurance, utility bills, mortgages, and other property-related costs to deal with, owning land is pretty cheap. Even property taxes on vacant lots are low, making the 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 don’t experience problems like wear and tear, depreciation, theft, or destruction. All this, in addition to being very cheap, makes owning land such a 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 buy the land before a major development project comes along, such as bungalow plots, agricultural land, NA residential plots, and similar projects. For this reason, land can be quite valuable, even as an investment vehicle for retirement.
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 beginners can do a great job investing when vacant land is the preferred investment, as it doesn’t require a lot of experience or ongoing involvement.