Vacant land is often overlooked and disregarded as a possible investment because people aren’t aware of the upsides and the convenience of buying such land and then selling it to generate an income. If you have ever ignored the possibility of investing in raw land and turned to some other form of investment, it is time to reevaluate because there are some great perks of investing in vacant land.
One reason why Americans are looking to invest in vacant land is the tremendous potential. There are a variety of things you can do with it. Firstly, you can choose to buy and sell which can bring you passive income, or an alternative investment for your portfolio. It can serve for building a second home, a weekend house or even a primary residence later in life, because you never know what might happen.
You can invest in vacant land even if you have no intention of doing anything with it at the moment. This is what is great about this type of investment. It is a hand-off investment that doesn’t depreciate and you don’t need to worry about its state in three years, about renovation before selling, broken pipes, leaking roofs, dealing with tenants, toilets or about anything getting stolen or destroyed. What you can think about though, is if the property is buildable or not. This is important in case you decide to build or you decide to sell it later on.
Another reason why vacant land is great is that it can be used as a long-term investment. Namely, you can wait for the land value to go up and sell it making a great deal of money. In addition to this, you have no mortgage payments, no monthly utility bills to pay and on top of it all, the property taxes are usually somewhat cheap.
Bonds, stocks and mutual funds all make sense as investments and so can vacant land. If you have a good plan and buy land in the path of growth, you may find yourself with an asset that a lot of other people will want to get their hands on when the prices have sky-rocketed compared to what you paid.
The possibilities are endless if you have a good eye for business and making good deals. Once you invest in land, other uses can include leasing it to the local companies for the wind and solar energy production. This won’t do any damage to your property and you can have a passive income coming your way. Another option is to lease it to advertising companies that will put billboards up and pay you rent for having their ads installed, especially if your land is near a major thoroughfare or highway.
Bottom line, if you’ve thought of alternative ways of making passive income that you can save for later on in life, the solutions out there are more than one could count. Vacant land can be another resource to make it all possible.