Trying to decide if now is a good time to invest in land? Explore seven reasons land investments make sense and the best way to find your perfect properties for sale.
Is now the right time to invest in land? Most financial experts would tell you anytime is the right time for land investments. You may have heard the saying, “they can’t make more land.” Due to this fact, inflation, and population growth, you can count on land value to remain high.
Raw or undeveloped land is a finite resource with nearly limitless demand, so it’s almost impossible to go wrong with land investments as long as you know what you want and how to buy wisely. Read on to discover the top seven benefits of investing in land and how to find your ideal properties for sale.
Top 7 Benefits of Land Investments
#1: More affordable than purchasing property with a structure.
Investing in raw land costs less than buying land with buildings on it and gives investors a blank canvas to do as they like. You can choose to develop the land, leading to an immediate boost to land value, or keep it raw with minimum future costs necessary.
#2: Involves low carrying costs like mortgage, insurance, utilities, and maintenance.
In addition to lower carrying costs, investing in raw land tends to provide lower property taxes than purchasing properties with structures. You will also benefit from various tax deductions and credits, further reducing your tax liability. Furthermore, if you sell the land for a higher price than you paid for it, you won’t have to pay income tax on the profit.
#3: It’s a tangible asset you can use.
Unlike bonds, mutual funds, or stocks, an investment in raw land gives you a tangible asset you can use as it appreciates. You may choose to use it for recreation, like hunting, fishing, hiking, or camping, or you can decide to build a house, rental property, or other structure or use it for storage.
Even if the purpose of buying undeveloped land is to hold and resell it for a higher price, the option is always there to use it for another purpose. For example, convert the land into a camping site or solar energy farm, or use it to harvest timber. No matter what purpose you choose for the land, you’ll have an asset that is functional and valuable.
#4: Potential for high ROI in the long term.
As the price of land will likely become increasingly valuable in the years to come, buying and holding onto raw land can help you earn a nice return on investment in the long term. While it’s not a get-rich-quick investment, and there are risks with any investment type, land is a valuable resource with a limited supply. As such, it is an asset that a lot of other people will want to get their hands on as the population increases.
#5: Vacant, raw land requires minimum work and upkeep.
Owning undeveloped land offers the major benefit of not needing to invest in repairs or maintenance. This means very little, if any, money or time is necessary to maintain the property, allowing you to hold the land as long as you want as an asset without additional costs.
#6: Ability to lease out land to hunters, nature enthusiasts, or farmers to generate income.
Leasing is a great way to earn income from your land investment. You can lease your undeveloped land out to hunters or fishing enthusiasts. Farmers and ranchers may also be interested in renting your land for agricultural purposes on a short-term or long-term basis. By leasing out the land, you can increase your return on investment, covering your property taxes and making a profit.
#7: Hassle-free to purchase, especially if you buy it through a reliable source.
Because many investors gravitate toward house flipping, developments, and rental properties, there’s less competition for raw land purchases. As a low-competition niche, land purchases tend to be easier and more affordable.
At Government Auction, we make proceeding with your land investment easier than ever. From searching and bidding to winning the land auction, we have step-by-step instructions and the widest selection of land for sale in the United States. Other reasons to choose Government Auction to invest in land include no qualifying financing and low down and monthly payments. We are here to facilitate a streamlined, successful land investment.
Tired of an unlevel playing field when it comes to purchasing investment land>? Government Auction takes the hassle out of the process of bidding and winning your perfect property. We never check your credit. Instead, we offer guaranteed financing and extremely low down payments and monthly payments. Head to GovernmentAuction.com to explore the widest selection of land types available throughout the United States through one user-friendly platform. Let’s connect you with the right investment land, so you can become a proud landowner.