After 20+ years in the business of buying and selling land, it is still shocking to hear people express their disinterest in choosing land as an investment strategy. Reasons given for not choosing to invest in land include everything from, “it just sits there” to “it doesn’t make money.” However, buying into these schools of thought are detrimental to the investor looking for a solid, long-term investment. Keep reading to learn four solid reasons land is the perfect investment for beginners looking to start their portfolio or for the seasoned investor looking to diversify a portfolio.
1. Land Will Run Out.
Although buildings can be built, demolished, and rebuilt under new business names, the land upon which they sit will remain the same. New land cannot be created and is therefore a resource that is in short supply. Within any country around the world, as populations increase, the demand for land will increase, and the prices of land will increase. Choosing to invest in land while prices are reasonably low could offer potential for great returns in the future.
2. Land is an investment you can see.
Unlike stocks, land is a tangible investment. Regardless of the season experienced by the market, an investment in land cannot disappear as an investment in stocks, products, or businesses can.
3. Land is a great long-term investment.
Not only can land be seen and watched, but it also cannot suddenly lose all of its value like other types of investments. As land becomes more finite, the price to purchase land will only increase. Therefore, the value of a strategically bought land investment will continually rise over the years.
4. Land is a “hands-off” investment.
Land is known as the “Golden Child” of investments. Unlike investing in real estate properties, raw land requires little to no upkeep. There are no burst pipes or outdated appliances to repair, and there are no headaches brought about by trying to collect rent from tenants. Once the vacant land is purchased, it practically takes care of itself.
Of course, investing in land may not be the optimal strategy for every portfolio, currently. However, it doesn’t change the fact that land investment is a crucial investing strategy to know and understand. Choosing to purchase land can offer an investor better returns with lower risks, a low maintenance investment opportunity, and a tangible asset to add to their portfolio.
To see premier agricultural land, recreational land, or raw land listings in MS, LA, and AR, visit: https://realestate.landmaxproperties.com/search?agent=Blair-Marble
