Why You Should Be Investing In Land
Updated: Oct 13, 2020
The simplicity and stability that comes with owning the right piece of land, purchased at the right price, can far outweigh the myriad of problems that come with any other type of real estate. If you’ve overlooked raw land as a viable investment opportunity in the past, you need to take a few minutes and get educated about what land is all about!
Here Are 10 Reasons You Should Be Investing In Land:
1) With Vacant Land, You Don’t Need to “do” Anything to the Property.
Forget construction! Forget renovations! You don’t need to be an expert or know anything about how to rehab a property yourself. In most cases, you really only need to know one thing: “Is the property suitable for building?” As long as someone else can build on the land if/when they want to, a huge part of the battle is already won.
2) Raw Land is a “Hands-Off” Investment.
Have you had enough of dealing with tenants, toilets, bugs, mold, lawn care, leaking roofs, bursting pipes, broken furnaces, and the hundreds of other issues that come with owning buildings? Vacant land doesn’t involve ANY of those things. Once you buy it… it sits there, it behaves itself, and nothing happens.
3) Statistically, Vacant Land Owners are Highly Motivated to Sell.
Why? Because vacant landowners (by default) are always absentee owners. When a person doesn’t live inside of (or even near) the property they’re trying to sell, there is less of an “emotional connection” – because it isn’t their primary residence. In many cases, you’ll find that these sellers are willing to sell their land for pennies on the dollar – simply because they don’t live anywhere near it, it’s not producing any income for them (because they don’t know how to optimize their land correctly) and as a result, they are much more apathetic about it. Find these people, and you will find some incredible deals.
4) Land Investors Have Very Little Competition to Deal With.
Are you tired of dealing with such stiff competition on every property you try to buy? Are you sick of getting outbid on every good deal you’re lucky enough to find? Well, guess what… there is very little competition in the world of raw land investing. You see, most real estate investors have their minds stuck on things like houses, apartments, commercial property and the like – because that’s what everyone else does. Most investors don’t understand the superior benefits that come with land and this can definitely play to your advantage.
5) Land Investors Call Their Own Shots.
When you buy vacant land the right way, it’s easy to buy each property with your own cash and completely avoid dealing with banks and mortgage companies. When you know where to look for great land deals, it requires very little start-up capital to get your business up and running.
6) Land is Very Inexpensive to Own as a Long-Term Investment.
When you buy a piece of land for the right price, there are no mortgage payments to make, no utility bills to pay, the cost of property insurance is nominal (if you have it at all) and property taxes are extremely cheap. If you want to park your cash somewhere and forget about it, vacant land could be exactly the investment vehicle you’re looking for.
7) Land Gives its Owner Peace of Mind.
Think about it – land is a long-term, tangible asset that doesn’t wear out, doesn’t depreciate, and nothing can get broken, stolen, or destroyed. Put all of these benefits together with your ability to buy it for next-to-nothing… and can you think of a better combination?
10) They Aren’t Making Any More Of It.
Most people don’t think of vacant land this way, but the reality is that land is an extremely valuable resource with limited quantities available. Especially when you purchase land in the path of growth, you will find yourself with a finite asset that a lot of other people want to get their hands on. Stocks, bonds, mutual funds, and 401Ks all make sense in certain scenarios, and so does land. If you go into this with the intent of holding the right property for the long-term, it can make a lot more sense (and be a lot more profitable) than any other retirement vehicle out there.