5 Reasons You Should Consider Investing in Land Instead of Real Estate Property
Many investors overlook the idea of investing in vacant land, and spend their time searching for real estate property to invest in, instead. Land, however, is a very smart investment because it doesn’t require much maintenance (there’s nothing to replace, renovate or repair) and there are little to no expenses (no strata fees, taxes, utilities or plumbing costs.) Since you won’t be dealing with renters, there won’t be any emergencies or constant communication with tenants. Owning land is a clever business move, and investing in land can be one of the most lucrative investments you’ll have.
Land is a stress-free investment
The land you own will sit there and go up in value without you having to do anything. No maintenance or upkeep is required on your part. The land you own will not deteriorate, get damaged or unexpectedly change. Nothing can be stolen, and nothing can be broken. Real estate, on the other hand, requires upkeep and stressful maintenance such as renovations, construction, home repairs to keep the property in top shape, plumbing, electrical upkeep and the continual communication with tenants. When you own land, you don’t have to pay taxes, utility bills, strata fines or anything of the sort.
Land won’t depreciate in value
Land will only go up in value, it won’t depreciate in value. There isn’t any more land being made. Unspoken for land is becoming more and more scarce, which is why land will steadily increase in value and land owners will continue to be rewarded for cleverly investing in a limited and sought-after resource.
Land is easy to buy
When you’re buying land, you’ll come across land owners who are highly motivated to sell, and they’ll sell for cheap because they don’t have strong ties to their land. They are usually absentee owners who haven’t gone through tortuously meticulous home renovations or anything of the sort, so they don’t have a connection to the land, which lets them give it up more easily. When you’re buying real estate property, you need to put a lot of time in to organize thorough inspections and make sure the property you’re buying is in good shape. You need to check that the plumbing system is in good shape, that the home is free of mold and toxins, that the foundation is okay, etc. When you buy land, however, you could buy a lot without even laying eyes on it. As long as the land in question is in a good location (near a body of water is always a good thing, for example) and in a growing area (where developers will soon want to buy your land) you could do some easy research and buy a lot of land online without much second thought, and without having to deal with banks.
Land is easy to sell
When you buy land, the main thing you made sure of before buying it is that the land is suitable for construction and is buildable. You likely also bought your land in a growing area, an area near a beautiful body of water, or made sure your land had some other sort of asset to its location. If the buyer can build on the land, and the land’s location is good, you shouldn’t have any problems selling. Development will, sooner or later, take place within the location of your land. That means that in no time, someone will want to buy your land in order to start building on it.
Your land can generate income for you while you sleep
There are several ways your land might be able to generate income for you. You may be able to rent your land to solar-power companies, telephone companies who need to put up a cell tower, wind-driven energy companies who need land for wind mills, etc. You could also lease your land out to farmers who could use your land to grow crops or graze herds, or your land could be used for horse stables, or even be rented to hunters during hunting season. These are great ways to earn income on your land until you’re ready to sell it to a developer who will ultimately build on it.