Investing in land, including acreage and lots for building is a very profitable market if you know what you’re doing. Since land for sale isn’t accompanied by homes that have to be inspected and appraised, people often think they can simply just purchase any old plot of land out there and score a profit. That’s not the case, however, and there are guidelines you need to know for setting out as a pioneer in the land investment industry.
An impulsive buy when it comes to an empty lot or especially some acreage can really cost you. You need to investigate the purchase just like you would any other type of real estate investment decision. Investing in the land alone does come with its advantages. Think about the days when people were buying up land for cheap, even oceanfront lots, knowing one day that developments would take place and that huge profits would be realized.
You can even choose to develop some of the land yourself if you have solid ideas. Of course, just because you’re a pioneer when it comes to investing in land doesn’t mean you want to buy all the lots that are selling for pennies on the dollar because they are undeveloped and out in the desert. Do you get the point?
Land and other remote areas that are undeveloped can be a good investment opportunity, however, depending on what type of investment you’re wanting to make. Do you plan on handing down your investment portfolio to your family upon your passing, or are you trying to build your own retirement? Either way, you need to diversify when it comes to buying land just like you would if you were playing the stock market.
In other words, you don’t want to buy several 10 acre lots and call yourself a good investor. Look all over the country, but be wiling to travel when you’re going to buy land. You never want to buy sight unseen. Of course you can check on Youtube whether there is any video related to the land you interested.
Land can make for a great investment for many reasons beyond just the simple fact you can flip it for a profit. Some people as mentioned choose to develop the land and make even more money out of the initial purchase. Of course putting more money into the land is going to come with an increased risk.
Let’s look at more of the reasons land is a good investment first. There is going to be much less maintenance required for land than there would be if you were investing in actual properties. Doesn’t that sound so much more relaxing, a much better way to play the real estate game? Don’t think that you’re going to be sacrificing the potential for huge profits either.
You’re still going to have to deal with people that want to talk you down in price, but you can be more stubborn. If you don’t want to come off the land for that price, let it sit. When someone really wants that piece of land, they’ll pay for it. If you do have to shave the price, only take it down a notch. Don’t give the land away. It’s land that is going to be used one of these days because it’s not like there is tons to go around anymore.
When you buy land as an investment, not only is there less maintenance involved as mentioned, but you don’t have to worry about providing all that curb appeal. You don’t have to dress up a home, and you don’t have to hold an open house. It’s not about the structure, it’s about the property.
When you are looking at land to purchase, be sure that you’re aware of any problems. For example, say you show up on a bright sunny day in mid-July. Everything looks great, but then next spring or during the winter, the land floods. You don’t want to be taken by surprise when it comes to anything that will make the land less appealing and much less valuable.
As a pioneer in the land investment industry, you want to seek out all those good deals at great prices. Are you ready to dive into the real estate market without having to deal with actual houses? You’ve been told about the advantages, and you’ve been given several guidelines to help you make your first purchase.