Buying vacant land is not usually the first strategy that comes to mind when you’re trying to break into the real estate investment game. Many people actually believe that buying land is pointless, since there’s no readily apparent way to turn it into a profit.
If you dig a little deeper into the realities and possibilities of land investment though, you’ll see that it can actually be one of the smartest real estate moves to make!
There are A LOT of ways to use vacant land.
One of the major differences between buying a house or building and buying vacant land is that you need to use a little more of your imagination to see the potential. Owning land offers plenty of opportunities for generating income or making use of it yourself! You could, for example:
- Build a house to live in or rent
- Build a commercial building to work in or rent
- Rent the land to someone else to build property or develop
- Develop or rent as farmland
- Use or rent for hunting
Land is an easy long-term investment.
Pretty much every aspect of land ownership is easy. There’s low competition to buy land, so you can get it quickly and at a good price. Once you have land, you don’t actually have to do anything with it if you don’t want to. Vacant land also requires very little maintenance, as is, which makes it inexpensive to own long-term. Plus, there are a lot of options to use it for profit that involve very little attention or work on your part.
Land does not depreciate in value.
A common risk in real estate investment is putting money into something you can’t make profitable or that loses value over time. Vacant land cannot be moved, destroyed, or otherwise damaged in any way that will affect its value. The worst-case scenario is that you don’t make or lose any money at all—think of it as just an alternative place to hold some of your assets. Land is also a finite resource, meaning the more limited it becomes, the greater value your investment will have.
Smith & Co Auction & Realty makes it easy for aspiring land investors to make their first or next move with our live and virtual land auctions! With our advanced real estate tools and knowledge of the local market, we can help any buyer find their dream property going up for sale or auction.
Contact us today for more information about our upcoming land auctions!