If you are thinking of investing in real estate, land is an excellent place to start. Land is a versatile investment, which can provide you with a lot of options and opportunities. Land investments can provide an excellent asset class that can provide you and your family with a stable, reliable income.
One advantage of land investments is that it’s a tangible investment. You can opt to sell this type of property when the market is doing well, or you can pass it down to your family descendants. If you’re not yet convinced, here’s a list of reasons why you should become a land investor right now.
Lower Expenses to Own
Owning a vacant land doesn’t require you to shell out a significant amount of expenses. When you have an empty land in your possession, you pay fewer taxes and mortgages, and you avoid paying for utilities.
The maintenance necessary for vacant land is lesser than residential or commercial real estate properties. You won’t need repairs or renovations to retain or improve its value. Indeed, investing in land is one of the best real estate investments you can have, especially if you find difficult all the hard work required in owning residential real estate properties.
Limited Management Issues
Since land investments require less maintenance, managing them is not a pain in the neck. The work that you have to put on will only come in finding suitable and profitable land. It’s advisable to find one that’s excellent for construction because that’s the thing buyers prefer.
After that phase, you’ll simply wait for buyers. You do not need to deal with maintenance and management issues as in residential and commercial properties.
They’re not making any more land
Another excellent thing about owning land is that you will be the owner of a real estate property investment that is considered scarce. The fact that land is limited makes it value more appealing and valuable over time.
Land Has No Depreciation Value
Yes, you heard it right, land doesn’t depreciate. According to accounting standards, this no depreciation value of land is due to the fact that it doesn’t get destroyed or become obsolete.
In a worst-case scenario, land value can only go down if the housing market is not doing well. However, this decline in value can’t be considered as depreciation.
That’s why investing in this type of real estate property is an excellent option for those who want to have a stable income.
Investing in land is the go-to real estate investment because you can have several options on how you’re going to profit from it. Here are some options that you can do with your land.
- Farming and Livestock Purposes.
- Renting our leasing your land for farming purposes can be viable source of income, especially if you own property located in a suburban or rural area. With this option, you can generate money from rent and appreciation for many years.
- Residential and Commercial Purposes. Based on your ambitions and ability, you can opt to sell, rent, or develop your land. You can choose to sell it to investors who want to use the property for residential and commercial ventures. Another option is to rent out the land for the same purposes for you to get a stable income out of it. You can also choose to develop the property yourself for residential or commercial purposes, but this option is very costly on your part.
You will encounter less competition buying land than purchasing a residential or commercial property. This advantage is because you can’t find parcels of land that are the same. They always vary in size, location, and shape.
As a result, when buying land, there’s a high chance that you will get it without going through a bidding process with other competitors.
Now you know that investing in land is more advantageous on your part than putting your money on other real estate properties. Land is scarce, versatile, has no depreciation value, fewer management issues, less maintenance, and less competition. So, if you want to embark on real estate investing, you can’t go wrong with land investments.