Much as land is among the most solid investments available today, it remains the most misunderstood and overlooked real estate investment. Most real estate investors have a lot of misconceptions about land investment with many claiming that vacant land doesn’t produce any income.
This, however, is a very unfortunate misconception because nothing would give you some serious cash flow than land investment. The trick to investing in land that’s still in its natural state isn’t about buying it a good price but selling it for a good profit at the right time.
If you’re probably still wondering if land investment is worth your time and money, here are a few educative reasons that will undoubtedly convince you otherwise.
1. You Don’t Have to be an Expert
While it is true that land investment is ideal for someone willing to wait for years till someone comes calling, one great thing about it is that you don’t have to be an expert to invest in land.
Forget all about construction and renovations or how to rehab a property, with vacant land, all you need to understand is whether it is suitable for building. Provided you can find someone who can build on the land; you’re good to go.
2. No competition
When it comes to land investment, there is little to no competition from other buyers. If you’re tired of dealing with the stiff completion that comes with buying apartments or houses, then investing in a land would be worth it.
Real estate investors are mostly stuck on buying commercial properties and homes making it quite competitive. In the raw land market, however, there is virtually no competition especially because most investors don’t understand the benefits that come with it.
3. It’s a Good Retirement Plan
Of course, this would not be an ideal choice for pre-retirees who can’t hold onto the property for long to reap its benefits. Contrastingly, investing in raw land is a long-term investment and the best option for people who are years away from retirement, say, ten or twenty years.
They’ll be able to enjoy the benefits of its rising value. Moreover, it’s a long-term and tangible asset that neither wears out nor depreciates. You’ll surely have a peace of mind investing in land especially if you buy it at an affordable price.
It’s all About Timing and Location
A Land investment is very cheap as opposed to buying developed real estate. However, for you to feel your money’s worth, it’s probably a good idea to choose land in an area promising some real population growth. Moreover, you’ll want to sell the property during the boom cycles to enjoy even a higher profit for the same.