For some reason, most people do not consider investing in land as much as they do other things like stocks, shares, and properties. But why this is the case is a mystery. Perhaps it is the myth that there is little land left to buy or that the buying process is too complex. In reality, purchasing land is a much simpler and better investment than you may think.
There Is Only So Much Land
Land will always be needed, and it is not going anywhere. Buildings and businesses come and go, but land remains. Because land is a finite resource, it makes sense that it can be a lucrative investment.
Buy land, they’re not making it anymore – Mark Twain
and that really sums up the top reason why land is such a good investment.
Investing in Land Is Simpler Than You Might Think
It is a lot simpler to purchase land than you may think. Typically, the entire process is completed remotely online these days. That means you can call a seller and buy a piece of land quickly and effortlessly from the comfort of your home or anywhere in the world. However, you do need to be informed about a number of things before you take the plunge. There are many advantages to buying land, but you need to consider factors like the location, the amenities, the roads, and zoning designations. Once you have found a land plot that meets your needs, you can look at financing it and begin the process of buying land.
Land Stays the Same
No one can destroy or steal your land, which is why it is an excellent investment choice. Owning land also requires very little effort on your part. You do not need to maintain the land, renovate it, or protect it, as you would have to do with a physical asset like a house. Simply by leaving your land in its natural state, it will have value.
There Is Low Competition for Buying Land
While others are falling over themselves to purchase development areas, condo units, house flipping units, and such, you can become a shrewd investor by looking at an area that others are not. Compared to buying properties, the competition for buying land is very low. And it costs less than property too!
Land Has Endless Possibilities
What you use your land for is completely up to you. And having that feeling of freedom in an investment is certainly a great feeling to have. Your land could be the ideal site for building a family house or a retail unit. Other options are leaving the land as part of an inheritance, building your dream home on the land, or creating your own dirt bike track! Your options are literally endless.
You Do Not Need to Worry About Legal Issues
Generally, when you purchase land in the US, there are no risky governmental laws that you need to be worried about, thanks to the Dodd-Frank Act and the Secure and Fair Enforcement for Mortgage Licensing Act. So, there is no need to hire a lawyer to help you meet legislative requirements or payout costs for any other legal issues.
It Takes Time
Owning land is certainly a good investment. Typically, the price of land goes up, not down. However, it usually takes several years for it to increase in value. Land is for investors who are patient and smart. If that is you, then investing in land could be a very good idea.
Knowing what to look for in raw land is vital
Raw land is a catch-all term for undeveloped or unused land. When most people talk about investing in land, this is probably what they mean—buying an out-of-town parcel on the cheap and holding on to it until the time is right. Of course, what you see isn’t always what you get.
Here’s what to watch out for:
Is the ground solid enough to accommodate your building plans (or the plans of future builders)?
Is water accessible via a well or city hookup?
How is the condition of surrounding properties? Does the seller have any agreements with them?
Is there road access? Will you be able to get any large equipment you need into the property?
Are there any zoning issues that could hamper your future plans?
No matter how good the deal seems, make sure you do two things before you buy. First, get topography, soil, drainage, and other similar reports done, so you know exactly what you’re buying.
Second, visit the land in person. This can seem like kind of a no-brainer, but many people buying undeveloped or remote land are satisfied with a couple satellite images.