There are no complicated concepts that investors need to understand with land. In fact, investing in land is extremely simple when compared with more traditional investments such as the stock market. It is just that there is an ever-increasing demand for building and for sale and a restricted supply of property for sale. After all, they quit making it a long time ago.
The advantages are:
• Land is real.
• Unlike shares, land is tangible – it can be visited, seen and walked on.
• There is a limited supply of land.
• It is easy to understand and it is seen as a solid investment.
• Land is not open to accounting scandals and it is clear when property prices are going up (or down) and the reason for this movement.
• It is a very affordable way to invest in property
Land increases in value in several ways:
• By increasing property values (due to demand exceeding supply)
• By adding improvements, such as a well, septic, electricity, etc.
• By clearing a site for camping and/or travel trailers by removing large rocks, tree stumps, and making the space level.
• By landscaping, such as removing brush, dead trees, adding color with plants and bushes.
• By clearing a road to the property.
• By getting an easement, if there is not one in place already, to gain access to the property via a road.
• By fencing the property.