There are several reasons why investing in land is a great investment, but in this article we will just focus on 6. When thinking of your traditional investment opportunities, many do not even consider the option of purchasing land. Understandably so – people aren’t always willing to think outside the box when it comes to their money. Here are 6 reasons that may make you consider being a land owner:
1. Land is a Finite Resource
Land is scarce; meaning, we aren’t making any more of it. In fact, due to development, we are running out of it. Couple that with a growing population and eventually this finite resource will be used up. Buildings can be demolished and replaced, land cannot.
2. No Management Necessary
Aside from paying property taxes and possibly Association dues, there are no management costs for carrying land. There are no upkeep costs, no property managers to worry about or pay. Land is the well behaved “Golden Child” of investing. In its natural state it will always be worth something.
3. No Depreciation
Land cannot depreciate because it cannot be destroyed or moved. Regardless of what the global economic situation is, you will always have something tangible that can be sold. Land is less costly to buy than developed real estate, simply because there’s nothing there (aside from the raw land obviously.) There are no improvements or additions to it that make it more or less valuable.
4. Versatility Options
Whether you want a piece of property for recreation, something to build on, farm or graze animals – land gives you a wide range of options. If none of these options appeal to you, you can always rent it out. Land gives you the opportunity to be creative and mold property how you want.
5. Land is Great to Hold Long-Term
Land is a smart long-term hold, allowing you to win the benefits of rising values. This is especially true if you buy in an area that’s due to expand and grow. However, it’s for the patient, smart investor, someone who is willing to hold for the long-term or pass it on as a legacy. You can hold it for a lifetime and leave it as part of an inheritance. There is a slew of possibilities while you hold the land that can be income producing as well whether it be farming, sign space rental, cell phone tower leases, etc.
6. Land is Easy to Buy
Land buying is typically quite simple. Like many things these days, the entire process can usually be done online. You can purchase when and wherever in the US you want! When purchasing land, you don’t need to rely on an expensive bank loan or mortgage. You might not need to take out any loan – you can always pay cash! A lot of private sellers, like our company, Southwest Properties, Inc., offer easy financing terms that make it easy to buy land on any budget. Plus, we do not require credit checks!
To recap, vacant land is one of the most overlooked and misunderstood real estate investments in the world. Land is a tangible, finite resource that is easy to purchase. Land requires no maintenance and is easy to purchase, even more so to own over a long period of time. The simplicity and stability that comes with owning the right piece of land can give you serious peace of mind for your investment. Arguably, land investing could be the most powerful strategy you use to build up your portfolio!