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 who wonder why land is a good investment ask questions like:
What income does the vacant lot have?
What are you doing? She just sits there.
What’s so exciting about it? 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 big plus; as you will soon find out why. Also, what’s boring about an investment that can make money?
Top 10 reasons why you should invest in land
1. No action required on your part
The land can stay as it is: it doesn’t need to be renovated, repaired or built on to keep its value. You just need to know that someone else may wish to build something on top of it or own it as it is and voila. So whenever you own land that someone would pay for, you’ve made the right land investment.
2. Vacant land owners are more likely 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 is no sentimental reason 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 missing out on any source of income. 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 to owning a rental building. The building will require you to deal with tenants, plumbing, and other annoying issues that come with having a building. But the wasteland demands nothing of you. Buildings, on the other hand, can have mind-boggling claims 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 usually have to deal with banks and mortgage companies. But with land, you’ll get your hands on great real estate 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 go up against a lot of competition. This can get tiring as you will lose a lot of deals even when you win a few. With vacant land, you can avoid many of these challenges because competition for vacant land is virtually non-existent.
6. Does not need inspections
Any good real estate investor will often require viewing of the building they are purchasing before paying for it. In fact, a lot of information may be needed to ensure that the right decision is made even after viewing 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 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 a vacant lot. So if you can offer financing to your buyers, you can sell your land for 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 a property, owning land is pretty cheap. Even property taxes on vacant land are low, making land the perfect investment if you don’t want all this hassle.
9. It gives you less things to worry about.
The land is very stable as an investment. It does not experience problems such as wear, depreciation, theft or destruction. All this, in addition to being very cheap, makes owning 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 such as bungalow plots, agricultural land, NA residential plots, and similar projects come along. For this reason, land can be very valuable, even as a retirement investment vehicle.
Investing in land is very lucrative
With the land, you get a lot of passive income. Most real estate investments cannot offer you this comfort. Even novices can do a great job investing when vacant land is the investment of choice, as it doesn’t require a lot of experience or ongoing involvement.