The short answer is yes. Investing in land can be a smart move. The key is getting into the project with knowledge and strategy.
According to conventional wisdom, the value of real estate usually increases over time. Due to economic growth problems over the years, consumers now know firsthand how volatile land and real estate markets can be, leaving them suspicious of conventional advice.
Before delving into the whole topic, if you are considering a land investment, Fundrise is a good place to start your search. With less than $10, you can start building your own asset portfolio.
Now, why buying land is a good investment or not.
Why buying land is a good investment
Yes, there are misconceptions about the advantages of investing in land. Any disadvantages of investing in land are negligible compared to the many benefits. If you are wondering what these benefits are, then this article is for you.
Here are some of the reasons why a land investment is a very beneficial investment.
Gives peace of mind
It is better to experience the benefits of owning land than to read it in an article. Among the many benefits that landowners enjoy, peace of mind and financial security top the list.
Experts advise investing in raw land and buying land for future use, such as housing or construction. No maintenance needed, and you can resell your land at a higher price in the future.
We all know what’s going on in the stock market today. You can wake up and find your assets in red. With the high volatility of the global economy and currency values, there is little stability, or should we say tangibility.
Investing in an untapped plot of land is much less risky than investing in stocks. It cannot suddenly fade away or become worthless. In the worst case scenario, there will be no stability in monetary values, but regardless of the state of the global economy, the value of the land is constantly rising.
The demand for land is greater than the supply
Land is an increasingly expensive and scarcer resource. We are unable to create more land. We have a limited amount of land, and with the growth of the population the demand for it and its price increases.
Most venture capital investors want to take advantage of developments, apartment structures, and house flips. High competition is usually a primary concern when people think of real estate investing. It is quite different when we talk specifically about land investments. There is little competition in this area, so you can buy a few acres of land in a good location without breaking the bank.
Little or no administration fee
What is the cost of land maintenance? Compared to the repairs or replacement of the roof, mortgages, utility bills, etc. that come with owning real estate assets, land requires very little to maintain.
Things to consider before buying land
When looking for new investment options, location is one of the most vital factors. The land you decide to invest in should reflect its purpose. By this we mean that if your potential customers of your land are commercial users, then your land must be in a strategic location where merchants, businessmen or commercial customers can find it easily.
Getting to the road
What is the benefit of buying a land cut off from social facilities that makes it uninhabitable? That is why you need to consider the possibility of land access to roads. This is a potential problem in rural areas. Ensure that the ground is not cut off from the main roads.
Depending on where you are and the regulations, you may have to keep some cash aside while you prepare to purchase the land. The key is to spend wisely. In some areas, title insurance, land surveying, etc. may be required in the reason for purchase. Know that these requirements are very beneficial for the safety of your land and yourself.
Why is land a good investment?
Buying land offers many ways to earn money. You can still make a large amount of money by choosing small plots of land. Owning land increases your financial and earning potential. You have the option to develop property for rent, raise animals, grow crops, or grow vegetables and fruits.
What is the best way to buy a plot of land?
Paying cash is one of the best options because lenders charge more fees to finance vacant land because they see it as a riskier investment than a home that has already been completed. Land budget and other costs such as utilities installation and property taxes if you intend to pay with cash.
Is it better to buy a land or a house for investment?
You should allocate more time and effort while buying land because it requires more research on buying a home.
Best online land investment platform
When we talk about investing in raw and undeveloped land, such as farmland, one name always rings the bell, AcreTrader, and rightfully so.
AcreTrader is a crowdfunded investment platform that allows you to acquire shares in farmland and profit from the appreciation of the land or the rents obtained by those who use the land. The online platform allows investors to buy shares of farmland instead of commercial or residential real estate. The platform has proven to be very safe as it uses a registered broker, North Capital Private Securities Corporation, as collateral.
If you are an accredited land investor and want to try something new, AcreTrader is well worth it.
Although there are several ways to invest and grow your wealth, investing in land remains a good option, especially because of its returns.
It is important to note that the success of your investments depends solely on your knowledge and strategies. If you are buying land for rental purposes, make sure it has features or structures that attract tenants. On the other hand, buyers who want to earn a living through farming should choose productive land in a good location.