Land investment is an excellent way to diversify your portfolio with great potential gains and minimal upkeep on your part. However, it’s also one of the most overlooked investment opportunities by investors nationwide simply because, on the surface, these deals appear less pleasing to eyes trained for picking out apartment buildings, homes, and other forms of real estate to flip. There are many benefits associated with this type of investment that you should consider before making your next big buy.
The Pros
Buying and reselling land seems like a dull investment to some, but the potential benefits are astronomical when you approach the situation the right way. As an investor, you’ll definitely want to hop on board and take full advantage of each and everyone to turn a huge profit.
- A hands-off investment that requires no extra work from you after purchase
- Better prices and easier buys thanks to motivated sellers
- Less competition than in other markets
- No need to travel to the plot of land between buying and selling
- Inexpensive long-term ownership
- Land is a limited resource that appreciates in value
Raw land investments are often easy buys, effortless to maintain, and easy to sell, especially when the housing market explodes and builders are looking for more space to create neighborhoods and other buildings. Furthermore, you can sit on your land as long as you need without worries regarding upkeep costs so that you can hold out for the deal you really want.
The Cons
Where there are benefits, there are always accompanying drawbacks. Thankfully, when it comes to land investment, these are minimal. First and foremost, it can be difficult to find traditional financing for land purchases, which could make the initial purchase a struggle for some. Next, there will be fewer tax advantages with this type of purchase than with a multi-family building as an example. Finally, depending on the market surrounding your purchase, you may not be able to unload the property right away. These factors are all potential complications to consider alongside a professional real estate representative before making your purchase.
Investing in land can be an excellent move for filling out your portfolio and making some serious money, but you have to take all of the proper variables into consideration in order to get the best deal possible and make a sound, forward-thinking buy. Contact us and speak with a professional to discuss your options and find the best investment opportunities for your current portfolio. Call 480-253-9431 or email info@royalcre.com.
Leave a Reply