Owning land can provide you with peace of mind. You never have to worry about selling or renting it. And unlike shares and stocks, it doesn’t wear out. Land doesn’t lose its value and remains valuable no matter what happens to the world economy. In other words, buying land now is one of the smartest investments you can make. If you’re patient and smart, you can invest in land for years to come.
The initial cost of buying land can be substantial. Depending on the amount you’re willing to pay, it may end up costing you thousands of dollars. But land can provide a low-beta diversifier for your investment portfolio. Though land value isn’t always in lockstep with other asset classes, it can rise dramatically. And as a landowner, you’ll be able to reap the tax benefits as well.
Another major advantage of owning land is that it’s less expensive than investing in developed real estate. This is especially true for those who are a few years away from retirement. Land can diversify your portfolio and win you rising value without any additional work. Additionally, land is cheaper to buy than developed real estate, since it hasn’t been improved or added to. A lot of people also prefer to own a piece of land as opposed to buying it as a whole.
The main disadvantage of owning land is that you can’t sell or convert it to cash very easily. Land is not divisible, so it can be difficult to expand your land holdings. Land is also very expensive to trade. Its transaction costs include real estate agent commissions, surveys, title insurance premiums, and transaction taxes, which can reduce your profit. But once you’ve got your land, you’ll see a much better return than any other vehicle.
Moreover, land is cheap to maintain. Compared to renting, land maintenance doesn’t require significant investment. You can hire people to do it for you or do it yourself. Then, you can plant trees and other plants to make your property more attractive. If you’re unsure of the maintenance of your land, you can fill it in so that potential buyers will be interested in it. Additionally, land value can increase when the area’s economy improves. Many land buyers look for property near employment opportunities and infrastructure projects.
Another big advantage of investing in raw land is that it’s cheaper than purchased properties. Compared to built property, raw land is an excellent long-term investment because it’s a blank canvas for developers. Unlike buildings, there’s no property tax or insurance, and you don’t have to worry about utilities. This makes it a smart investment for many reasons. It’s also easy to walk away when finances get tight.
Owning a piece of land is one of the smartest real estate investments you can make. Many sellers do not list their properties on the market. You can find cheap land in the country without putting up a large sign. And you can sell it later, if you want. In addition to generating income for years to come, vacant land is an excellent asset for your investment portfolio. And you can use it to build a house if you want.