There are people who are able to find their perfect dream home on the market, and then there are some who want to build their own home according to their own specifications and desires. If you fall under the second category, then you’ve come to the right place. Here’s why!
Upside Earning Potential
American’s (no apostrophe on Americans) oftentimes forget the potential upside of vacant land as compared to an already developed property. Even if you aren’t living on the property right away, the earning potential is endless. If you truly believe you have found just the right property for your future dream home but aren’t ready to develop, you have so many options to create additional income. For example, if you’ve bought (purchased) property in the rural country-side, you have the option to rent it to farmers OR if you’ve bought (purchased) just outside the city limits, you can rent your land to solar company’s (companies), school and educational programs, research organizations and so forth. The land is yours and holds thousands of different ways to use it.
It is always there – No Risk Involved
There are many things you can do with vacant land, or actually not do, because either way it’s yours and it waits on you to decide when to start. You don’t have any risks of significant depreciation and unlike an already built house,. There is no risk of damages over time like a flood or a broken window, leaking roof and so on, and you don’t have to maintain it until you start building and living in it.
Low costs involved
A piece of vacant land, no matter where it is, (usually) does not have high property taxes and won’t have any insurance costs. If you choose to buy the land now and build later, you have the opportunity to lower repayment costs and save money. This is a great upside for those investing in vacant land as well. You have (low or no ) no costs of maintenance for it whatsoever, thus it isn’t a big burden on your budget.
If you are trying to go into the property market and you have a specific location in mind, your best option is securing the land months (or even years) before you plan on building on it, or before you are able to afford building on it. By buying the land like this, you are able to protect yourself from rising land prices, especially if you are buying land that’s of limited supply.