Whether you are a seasoned investor or just getting started with building your investment portfolio, land ownership is something you should seriously consider. Is there some risk investing in land? Yes, but it is low. The risk is much lower in comparison to other forms of investing, such as the stock market or investing in a new business venture. Land is something tangible, the population continues to grow, and there is no “new” land to be created. The rule of supply and demand will always be in your favor if you are a land-owner.
Hopefully my soap box speech has moved you closer to the belief that land is a good investment. The next step is to decide what kind of investment you are making. Are you looking for a quick profit or do you want to make improvements on and use this property over several years? Is this simply a moneymaking investment, or is this an investment for you and your family’s future? Let’s look into the merits of each path you could take.
Short Term Investing In Land
Investing in land in the short term is less common and a little trickier than a long term investment, although it is possible. The pros to a quick flip are:
- Cash in hand, and who doesn’t like that?
- Using the money to make more investments (preferably in more land!).
- Paying very little in property taxes, depending on how long the property is in your name.
Investing In Land For The Longterm
- Securing the future of your family. Land is a stable investment and can be passed down to future generations of family.
- Using the land as a cash generator. Some examples of ways to make money with your land are a vacation rental or agriculture (crops and/or livestock).
- If you wait longer to sell the land, it’s likely the value will have increased even more than if you sold in the short term. You will see the most increase in value if a big company offering many jobs has moved into the area or if the population has increased significantly over time.
- Being able to make improvements on the land that will increase the value significantly. The improvements can be simple, such as having the land surveyed, or more involved such as digging a well or building a house.
Anyone can become an investor in vacant land by buying from LandCentral.com. Everyone qualifies for financing; you won’t be turned down! You can also pay cash for your land and save a bundle. LandCentral.com owns all of our own properties so you don’t have to deal with realtor fees or closing costs whatsoever. All of our properties have a free and clear title so you can flip that land whenever you are ready, with no worry!
When it comes to investing in land, I always think of this quote from the famous philanthropist and extremely successful investor Warren Buffett:
“Someone’s sitting in the shade today because someone planted a tree a long time ago”.