Is Buying Land a Good Investment? 4 Things You Need to Know

Investing is an effective way to build wealth, reach your financial goals, and prepare for retirement. It’s for these reasons more and more American are investing their money, mostly in the stock market.

If you’re looking to invest, you’re probably considering the real estate market. Vacant land, to be specific.

But is buying land a good investment? This is a sound question to ask, especially considering that most real estate investors prefer investing in rental properties as opposed to vacant land.

In this article, we’re sharing some of the top things you need to know about investing in land.

  1. Land Is a Scarce Resource

Right off the bat, you need to know that land is a scare resource. It’s not renewable. Neither can anyone artificially manufacture it.

With most scarce resources, their demand is usually high. Vacant land is no different. People want to get a piece of it before it runs out. In truth, though, there will always be some land to buy, because there will always be owners looking to sell.

This is why land is classified as an appreciating asset. Buy a piece today at the right price, hold it for a couple of years, and sure enough, it will have gained value. You can then sell it and make a good profit.

  1. Land Is a Hands-Off Investment  

What first comes to mind when you think of investing in real estate? If you’re like most people, you see rental properties or house flipping.

Yes, these investments can be very profitable, but they need more than your capital. They need you to be there, physically monitoring the work, like the construction of a rental property. The only way around this is to set up an investment company and hire a manager.

The good thing about vacant land? It’s a hands-off investment.

After buying it, you won’t need to worry about it. Just let it be. It will still keep making you money in terms of gained value.

  1. It’s Easy to Buy Land

Long gone are the days when land investors had to traverse the country looking for the right pieces of land to buy. In the age of the Internet, you don’t even need to leave the comfort of your home.

Just hop on the web and start a search.

If you’re interested in buying land in a certain place, say, Wellington, Florida, search ”Wellington land for sale.” You’ll get several results of web pages with listings of parcels of land that are on the market.

If you find one you’re interested in, you can ask the seller to send you high-quality photos and videos of the parcel. This means you won’t even need to visit the land in order to make a purchase decision. Easy!

  1. Land Can Lose Value

As much as land is a scarce resource and is known as an appreciating asset, it’s possible for a piece of land to lose value.

There are factors, such as economic conditions and insecurity, that can drive down prices of land in certain areas. If you buy land in such an area, you will lose money if you decide to sell the parcel after it has lost value.

Do your research before snapping up a piece of vacant land.

Is Buying Land a Good Investment? Absolutely

If you were asking, “Is buying land a good investment?” you now know the answer. Vacant land is an ideal investment. You just need to ensure you’re buying parcels of land in the right location and at the right price.

Stay tuned to our blog for more investment tips and insights.

About RJ Frometa

Head Honcho, Editor in Chief and writer here on VENTS. I don't like walking on the beach, but I love playing the guitar and geeking out about music. I am also a movie maniac and 6 hours sleeper.

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