Most people will shy away from buying land. It can often be thought of as a pointless waste of money, and certainly not an investment that anyone is going to be interested in doing much with. However, the truth is that land can be an ideal investment, and it can bring in some incredible cash flow. Being almost entirely hands-off and extremely versatile, land may be one of the better investments out there; it’s just that no one knows about it.
If you’re looking for somewhere to invest your money, why not buy land? There are many different reasons why this is such a good idea; read on to find out what just some of them are.
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You Don’t Need To Do Anything
Once you’ve bought the land you’re interested in, and ideally, you’ve negotiated a good price for it, you don’t have to do anything else. You don’t have to spend out money on construction or plans or experts, although it’s not a bad idea to speak to Andrew Long and Associates before you part with any money to ensure the land can be built on at some stage.
Because this is the key; you don’t have to do anything with the land at all. You just have to buy it and keep it until you can sell it on to someone for a nice profit. As long as the land is suitable for building on, someone with the required knowledge and skills will want to do so, and this is how you’ll make your money with very little risk and absolutely no effort. Once you’ve bought it, the land can literally just stay there doing nothing, and still, make you a profit.
Owners Are Motivated To Sell
Although it won’t be the case for everyone, statistically speaking, landowners who have vacant plots and don’t know what to do with them will be motivated to sell. In other words, they will be very keen to exchange their land for money. If you can make that your money, you’re sure to make a profit a year or more down the line. This is because the land is doing nothing for them right now, but it could bring them some money. Plus, because it’s just land with no buildings on it and no particular memories attached (especially if they don’t even live nearby), there won’t be an emotional attachment which can skew negotiations sometimes.
Yes, investing in land will often mean waiting a while before you can realize the profit potential, but it will be worth the wait.
There Will Be Little Competition
When you buy property, you will often come up against a fair amount of competition – you might even enter a bidding war if it’s a particularly desirable property. This can mean you lose out on your profits since you’ve had to spend more right at the start.
With land, there is much less competition, often because, as mentioned above, people just don’t see land as a viable investment. You can take advantage of this and take your time researching the ideal plot to buy, as well as negotiating the right price. It’s unlikely you’ll have other investors trying to buy the same plot, so you can work out a deal that suits you, not a rushed one that costs you money.
You Can Buy Anywhere
When it comes to land, you don’t even need to have seen it or stepped foot on it to buy it or sell it. This opens up a huge avenue for you; if you don’t have to go to the land but can buy it anyway, that means you can effectively buy land-based anywhere at all.
This is even more true when you take into account that most of the transaction processes, including due diligence, can be done online and virtually. Since there are no structures to worry about, the inspection process is a simple one, and you can hire local experts to do this work for you. Just remember to factor the cost of this into your negotiations so that you can really maximize your profits.
It’s A Cheap Long Term Investment
When you negotiate well for a piece of land, you’ll find it’s a very cheap long term investment. There are no mortgage payments to think about, no utilities, no tenants, and although it’s a good idea to have some form of insurance to protect your investment, the cost of this is minimal. Plus, land taxes are cheap, especially when compared to property.
This means that you can hold onto the land you bought for as long as you need to without losing a lot of money in the process. You can then sell at a time – and price – that suits you, rather than being forced into something that you don’t like.