What are some of the most important things in which we invest?
Most people consider them to be their money, time, stock markets and other equity – like your home.
And while these are all great means of investing in many ways, buying land could be your ultimate jackpot ticket when it comes to its return on value. Depending on its location and current market, buying parcels of land could be one of the best investments to make considering how harder they are to come by as of recent.
I’ve put together a few things to consider about purchasing land during this red hot real estate market!
Short Supply
As a natural resource, open and undeveloped land is becoming scarce and more expensive over time. The majority of the land available is being used for new homes, buildings, complexes, etc. As the population here in South Florida grows, the demand for land and cost will do so as well. And since there is not much we can do about creating more new land, the laws of supply and demand will dominate the market.
Limited Expense & Management
Investing in land is much more affordable to maintain than investing in real estate to rent and/or flip. You avoid utilities, pay fewer taxes and fewer mortgages considering that you purchased an empty land. Land as a real estate investment strategy is also one of the best options out of there for people who are not cut out for the hard work of residential real estate properties. To be profitable in land purchasing, keep in mind it is very important that the property be suitable for future development – whether that be for agricultural, residential, or commercial use.
Tangible Asset
Unlike the stock market where your investment can increase, decrease, or lose value completely, land is tangible. Land is not going anywhere. Regardless of the economic situation, land should only increase in value. Many young people (20-30 years of age) have begun to buy land in highly desirable areas and build investment property due to the constant increase in value. Land can stay in families and be pasted on from generation to generation.
If you want more information about land investments or local land available for sale, contact me directly!