Just like any other form of investment, vacant land is a very important aspect of real estate investment that has been misunderstood and even overlooked by so many people. However, owning land in the raw form always comes with a range of benefits to the investor. In fact, vacant land is by nature versatile, hands-off and can (in some rare cases) produce quite some cash flow. Some of the benefits of this kind of investment include;
Investing in Land: It is a Hands-Off Investment
The best part about this form of investment is that you do not need to be a professional in aspects of construction, renovation or rehabilitation of property. All you need is to ensure that the property is suitable for building, farming or any other type of project. Furthermore, you will not be faced with the hassle of dealing with stubborn tenants, lawn care, bursting pipes, leaking roof, broken ac units or other issues that are associated with owning buildings.
Investing in Land: There is Lesser Competition
Unlike other types of property where you are faced with very stiff competition while trying to purchase, with vacant land you will have minimal to no competition at all. This can be attributed to the fact that most of the real estate investors usually have their minds fixed on things like apartments, houses and commercial property. While buying raw land, there will be less of such and hence you can acquire the same at a relatively cheaper price.
Investing in Land: It is Mostly Appreciating in Value
The key is that we are not producing any more of it. This makes it a very valuable resource as there are limited quantities available. In fact, should you purchase it in a place that is likely to experience growth, you will have acquired a finite asset that many people would like to lay their hands on. In most cases, land is always appreciating (over the long view) in value, and hence can be a profitable long-term investment.
All said and done, while purchasing such land, you may need the help of experts who will take you through the tax implications, environmental, zoning, legal requirements and guide you on what to look out for when purchasing land. This helps in ensuring that you are able to gain maximum yields out of your investment.
The number to having success investing in land is?
To understand what you are there to do!
From our experience, this is the most critical phase. If you have a clear plan it is easier to deploy capital while still operating within a margin of safety.
The SWFL REIA is the premier place to understand what you are here to do, in relation to real estate investing! We look forward to meeting you at a meeting soon!
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