When you think about real estate or investing in property, you most likely think about buying a home or maybe a multi-unit property. Have you ever thought about buying a piece of land as an investment, however? Most people don't think about buying land as a real estate investment but it's actually something you should think about.
Here are some reasons why you should invest in land as a good real estate deal.
Has A Good Return On Investment
One advantage of buying land as a real estate investment is it usually has a very good return on your investment. While not all land is valuable, if you do your research, you are going to find that many properties not only hold their value well but tend to increase in value over time. This is due to population growth and the need for more housing, businesses, and infrastructure.
This means that land is needed to build more houses, apartment buildings, and buildings for business. You could be approached by developers or city planners to buy your property at a much higher price than you paid for it. It could also mean you can lease or rent the land for mineral rights or for recreational purposes.
It's A Lower Cost Investment
In many places, investing in real estate can be an expensive prospect. That's not always the case when buying land. The cost of the land depends on where it's located and what it can be used for. If it's closer to the city and that city is growing, the land might be more expensive to buy. If the land is in a rural area that is just starting to see growth, you may find a lower-cost investment there.
The cost will also depend on how much acreage you buy and if there are any existing buildings on the property.
When you buy real estate, you will most likely have to do repairs to the home and maintain the property for tenants. When you buy land, however, there is very little or no maintenance required. If the land is located in a rural area where you are using it for hunters or other recreational purposes, you most likely won't even need to mow the grass.
If the land is located within city limits or close to a town, you will most likely have to keep the grass short and put up a fence, but otherwise land is pretty much low maintenance.
Contact a real estate service to learn more.