If you have ever considered investing in land, you may be making a wise choice. Before investing in land, be sure to consider the current market conditions, the economy and demand for housing. Weighing your options will allow you to make the best decision whether investing in land is in your best interest.
Investing in raw land has many advantages. Unlike buying other real estate such as housing, land is easy to acquire and very rarely is there competition. Land is easy to maintain and low cost in comparison to a developed property. Land has the potential for a quick profit and allows you to make a passive income.
There are various ways to make money by investing in raw land. There is always the opportunity to develop this land. Depending on the location, commercial, residential or multifamily property are all options. Investing in land is great for locations outside of a city. As a city grows, it will eventually expand further and further which makes it very likely for investors to make money.
Another option is to subdivide your land for land sales. Dividing up your land into smaller lots of land gives you the opportunity to make a good profit depending how much you can sell the smaller land for. Subdividing your land also gives you the opportunity to sell other parts of your land while keeping some land for yourself. Once the other lots are developed, there is a good chance the land you kept for yourself will increase in value which will give you another opportunity for profit. Whatever you choose to do, subdividing your land gives you flexibility. Check out another recent article, Selling Land to Developers, for more insight.
As a land owner, you have the option to lease the property. Business are always looking to lease land for billboards, cell towers and utilities. Leasing land is similar to other leasing programs, allowing owners to make a profit through a lease agreement. Leasing is another way to make a steady income from your property.
Buying and Holding on to Land
If you’re not interested in doing anything with the land you can still make a profit long-term. The great thing about owning land is it always increases in value because of inflation. Consider the land that was once undeveloped in metropolitan areas. At the time that raw land was purchased, it was probably worth a whole lot less than what they sold it for. Buying and holding onto land gives investors the potential to earn a large return. Holding onto land also allows you to pass the land onto generations which is a great inheritance.
Are you interested in learning more about the benefits of selling land? If you’d like to learn more about selling to those looking to invest in your land, contact me with any further questions you may have.