Why is Buying Land a Good Investment?
Investing in and purchasing land can be a difficult concept to understand. Most people have never given much thought to this concept. You might be wondering, "Is buying land a good investment?"
People aren't always willing to think outside the box with their money. You don’t always need to follow the lead of tv personalities, flipping houses, and doing outrageous home renovations. They make it look so easy, but no one is really talking about why land is a great investment.
Let’s go over some reasons why land is a wise investment!
Land Provides a Sense of Security
Land in its natural condition will always be valuable! There really is no extra effort required of you when owning a piece of land. Think of it this way, there is no renovating for you to do, no maintenance for you to take care of, you just own it.
The key to investing in land is to buy a property that can be improved one day. Whether you are holding onto the land for yourself, plan to pass it down to your family, or plan to sell in the future, it is a good idea for the land to be suitable for building on.
Land is a Limited Resource
Land is a valuable and limited resource. There is no endless supply of land, and no one is making any more of it! As the population of the USA grows, the cost of land and availability of land will increase as well.
Land is Tangible
No matter what the world decides about money tomorrow, land will continue to have value. Unlike stocks and shares, land doesn't disappear.
Land is a tangible and physical item that belongs to you, regardless of the economic climate worldwide. Although the value of money and currency may fluctuate, ownership never does.
Land Value Increases
According to the most fundamental economic principle (supply and demand), raw land will inevitably increase in value as demand for the limited asset grows. Rather than asking whether land will appreciate, the question now is how much it will appreciate.
If you do your research to make sure the land you are purchasing is in a path of growth, future developers may find it very attractive. You could eventually make some easy profit selling it way beyond what you paid for it.
Land is Less Competitive
While most people out there invest in condos, housing units, and house flipping, it’s not as common to buy a piece of land. As we mentioned at the beginning, today's TV shows have glamourized house flipping and it seems everyone wants to try their hand at it.
In this case, taking the road less traveled can definitely work in your favor.
Bottom Line
You may think investing in land is only for the wealthy population, but it can really be for anyone. It can provide you with a sense of security, it is a limited resource, it is tangible, its value increases over time, and it is a less competitive route to take.
At 316 Realty Group, we are more than happy to assist you in finding land on any budget. If you want to learn more about buying land for yourself or simply for investment, contact us today! We would love to help you.
