In these uncertain times, market forces have been entirely unpredictable. This adds risk to any type of investment that’s subject to these forces. While many people opt for stocks, mutual funds and bonds in their investment portfolios, there are other investment options available, such as vacant land.
Vacant land investments are gaining steam due to their tangibility and lack of maintenance costs, among other things. If you’ve been thinking about buying some vacant land, then this article should help inform your decision.
When it comes to investing, here are some of the benefits of vacant land.
The concept of supply and demand in economics points to land appreciating over time. Since land is a finite resource with a fixed supply and the world’s population is growing exponentially, this means that demand is going to increase.
Therefore, any land you buy today will almost certainly be worth more years from now. The question isn’t, “Will it appreciate in value?” but, “How much will it appreciate?”
Low entry cost
Buying vacant land that doesn’t have property already built on it is considerably cheaper than lots that have structures on them already.
While you might not have enough for a down payment on a plot with a home on it, you can purchase vacant land at a price that is much cheaper than that of a developed plot—so much cheaper, in fact, that you might be able to pay with cash.
Another perk is that property taxes and insurance rates are demonstrably lower on vacant land than on developed land.
While maintenance costs are lower, as mentioned above, the amount of maintenance you’ll have to perform is even lower than that. If you own a rental property, you’ll be forced to have its various utilities serviced many times as long as you own it. With vacant land, you’ll just have to secure the land and mow the lawn to prevent the land from becoming overgrown.
Full home customization
Purchasing vacant land gives you a blank canvas upon which you can draw your dream home. You’re not forced to decide what features you need, want or can compromise on—you can build and customize the exact home that you want. While there are zoning laws and building codes that you’ll have to abide by, the possibilities are essentially endless for your new home.
Investment exit flexibility
Another benefit of investing in vacant land is that you are basically free to do with it as you please. This includes building on it, holding it or selling it. You could buy it, build on it and live there for the rest of your life, or you could buy it, hold it for 20 years and then sell it. You can liquidate the investment at any time in a much less rigorous process than with developed land.
Vacant land is a tangible asset that you will likely completely own. You won’t have to take out a 30-year mortgage to buy a plot of vacant land, and the price of your land won’t crash because of an economic recession.
Call to have your plot of land surveyed today
When it comes to building your retirement portfolio, it would behoove you to consider vacant land investments. You’ll likely want to have that vacant land surveyed, and when you do, give us a call at Bettersworth & Associates, Inc. We’re the industry experts in all things land planning, and we have the certificates, awards and an A+ rating with the Better Business Bureau to prove it.
Categorised in: Land Surveyor