Investing in real estate has been a move that many has taken. It’s been proven, time and time again, that it is indeed a great and profitable investment. For many, it’s always about buying property and then renovating so it can be easy to rent out or eventually sell. I’m a property developer and I should be the first to tell you that I have not regretted my choice to invest in property. But people tend to overlook at a chance to invest in something that is low maintenance, but highly lucrative.
Vacant land is probably one of the most unnoticed real estate investments out there. Because vacant land is not the first thing investors think of when real estate comes up in a conversation, it’s not fully understood. There seems to be an assumption that land is a weak investment because of a couple of reasons. One is the assumption that it does not produce income and it’s boring.
But let me tell you why the misconceptions that often come with owning a piece of land couldn’t be any more further than the truth.
It is low maintenance
When owning a property, before you can generate income from it, you have so much to do first. You will need to make it presentable. There’s going to be a ton of renovations and construction. Whereas with vacant land, pretty much the only thing that you will need to know is whether it is suitable for building. If you can build on the land, then your investment is already a winner. The amazing thing about vacant land is you don’t have to deal with particular issues that landlords or property owners normally face like tenants, bugs, broken pipes, etc. Vacant land does not involve any of these.
Start-up capital is affordable
In general, owning a vacant land only requires little start-up capital. Just as long as you know where to look for good deals then you don’t really have to worry about the starting funds.
There is less competition
Compared to property owners, vacant land investors don’t really have to deal with stiff competition. As previously mentioned, most investors invest in a property that is why the competition there is tougher. Houses, apartments, commercial property – these are always first in any investors’ list. If you don’t want to have to face stuff like this, buying land is something you may want to really consider.
It is inexpensive as a long-term investment
Compared to property investment, you don’t have to worry about mortgage repayments and utility bills. There will be fees like property insurance if you decide to get one and property taxes which shouldn’t be a problem at all because it is cheap, that’s pretty much you will need to pay for. Otherwise, owning a vacant land is a pretty inexpensive investment.
Owning a piece of land provides more peace of mind to the investor than any other investment. Other than the fact that it is a physical asset, one great thing about it is that it does not depreciate nor wear out. It’s also an investment that doesn’t get destroyed unlike a building or a property where you constantly have to improve. For these reasons alone, it is indeed a really good investment.
If you are ready and willing to take on a business like this, you must also be reminded to put some work on studying what this investment entails. Do research. Ask around. Land investment when done right is always a winner.