The Secrets To Profiting From Undeveloped Land
They say that bricks and mortar are the classic way of making money even in times of economic strife. What you might not realise is one can make a profit out of land alone! People end up acquiring land for all kinds of reasons.
For example, they might get a parcel of land as part of their inheritance from a loved one. Or they might move to a new home with acres of spare land they will seldom use. Others may buy land just because it's cheap.
If you've got some undeveloped land, you will no doubt be wondering what to do with it. As you know, it will cost a lot to build properties like houses or apartment blocks on it. Did you know your undeveloped land offers plenty of scope for revenue? Here are a few examples of how you can profit from yours:
Subdivide your land
Perhaps one of the simplest ways to turn a profit is by subdividing your land. If you've got acres of land that you won't use, this strategy makes perfect sense.
It's also a good idea if the value of your land is rising. For instance, let's say that the nearby area is showing high demand for housing. You could subdivide your land and sell it to a housing developer.
Before you do so, it's worth checking with your local authority first. Subdividing can sometimes mean you must pay a fee for Public Open Space purposes. In other words, you pay to subdivide your land rather than giving it away for free. Doing some prior research will help with determining your POS contribution for land subdivision.
Sell advertising space on it
Is your land near a major road? If so, it's likely that road will see thousands of motorists on it each day. One interesting way to make money for your undeveloped land is by selling advertising space on it!
Many landowners allow marketers to place billboards on their land that motorists can see. Let's face it: billboards are a sure-fire way to grab someone's attention on the road. You could lease your land out to marketers on a long-term basis. Doing so creates a longer guaranteed income for you.
Offer your land as a marketplace location
One of the things I love is finding bargains in marketplaces. And it's something that many other people enjoy too. Is your land in a prime spot near a town or city? If so, offering it as a marketplace location is another option.
You can lease the land out to a market organiser. They will make sure that your land gets maintained. Plus, aside from the income factor, it means your land gets put to good use.
Lease it to a mining company
Are you lucky enough to own land on top of some natural resources? Perhaps your land is on top of a coal seam. Or maybe there is evidence of oil underneath it.
As you can imagine, leasing your land to a mining company can be a lucrative proposition! As part of the deal, you could even ask for a percentage of the profits of resources mined from your land.