Is Buying an Acreage a Good Investment?
In real estate, the value of the place is appreciated over time. But investing in undeveloped land is not as simple as investing in a duplex. However, complex the process may be, investment in land is always the wise choice. The trick is to enter the venture with full preparation and information. Before you purchase land, there are certain factors that you must keep in mind. This blog will take you through all the points.
Most people think that buying a house is a great investment but this is not the only truth. Because of lack of appropriate knowledge, people avoid buying acreage. But it definitely goes without saying that land investment is a strategic move investor can make.
Surprisingly, there are a fair number of people who overlook land when they think of investing. Land investment is a crucial real estate investment which you would want to know about.
Investing in land can be a boon because it offers investors better returns at lower risks. It also gives them the opportunity to diversify their portfolios. So, there is nothing wrong in investing in land or acreage.
Here are some fascinating facts that we have brought to light for you. Below are the reasons to make you understand that land is a lucrative investment to make.
Land is in Short Supply!
Land, as a resource, is becoming scarcer over time and it is becoming expensive. There is nothing that you can potentially do to make more land. With the increase in population, the demand for land also increases, eventually the cost. So, the owners of land or acreage remain at profit.
Owning land is like investing in gold. Once you own land you can be rest assured that no one will steal it from you. The land will be there with you for the rest of your life. Whether you move to any part of the country, it will still be there. But to be able to own a piece of land, you must complete the land buying process.
A piece of land remains in good condition and with time, it increases in value. Owning land means you get financial security and peace of mind. As per experts, you must look for investing in raw land and buying land for future development like housing or building. Land does not require maintenance and you can even sell it at a higher price in the near future. So, investing in land will give you peace of mind and will be worth every penny.
Land/Acreage is a Tangible Asset
Investing in a vacant piece of land is significantly less risky than investing in stocks. The land will not disappear or it will not lose its value all of a sudden. In the worst scenario, just the currency and monetary values will have zero stability. Irrespective of the world’s economic situation, the value of land only increases constantly.
Less Competition in Land Investments
Most investors with investment capital might prefer developments, house flipping to gain profits. Generally, high competition is of primary concern, especially when people think of investing. But when we talk about land investments, it is different because this niche in the real estate niche has low competition. You can buy a few acres in a suitable location without burning any hole in your pocket.
Land is Priced Really Low
Unlike other assets in real estate, the land is considered to be affordable and requires minimal effort for its maintenance. You do not have to pay any utility bill, mortgage, roof repairs and replacements. Another benefit is that the land owner does not have to pay the insurance. Property taxes are the cheapest so your property won’t demand unexpected costs but silently increases in value.
No Risky Government Laws
There is nothing to worry about the laws or rules that the government passes. Risk-free ownership of the property is maintained as a result you will also not need to hire lawyers to meet any government requirements.
Best to Make Safe Money
Selling the land is considered one of the simplest ways of making money. It is a profitable investment because you can make quick and safe money from it. You can either sell your land, use it for agricultural purposes, use it as boat storage or even lease it out. The best use of land is an imperative factor in determining the actual value of your land. On the other hand, landlords have to improve their property to increase its value and then sell it at a fair and high price.
No Need to Spend Extra
You will not need any furniture, electricity or other amenities to keep it in great shape. You will not have to customize anything or add any features to increase its value. So, there is no extra expenditure you will have to make even while selling the land. No extra cost on maintenance or refurbishing.
A Sure-Shot to Get Wealthy Buying land is a sure-shot way to get rich without having to take any risk. Land ownership can help you secure, build wealth and obtain financial stability. Nonetheless, you must understand the land investment process to get maximum out of the property.
Land investments are not meant only for the rich. Beginner investors can also buy a land parcel with a small amount.
Less-Time Consuming and Reliable
Compared to the other real estate investments, land buying is considered to be less time-consuming, reliable and inexpensive. Buying land gives ample opportunities to generate cash. Even if you choose small plots of land to make a purchase, you can make a fair amount of money.
Factors to Consider Before Buying Land
- Decide the budget- Choose a property that appreciates quickly. If you have decided to invest in the land, make sure you determine the budget and the purpose of the land.
- Choose a location- The place is of utmost importance. So, choose a location that can get you the best land parcel, meet your needs and is also within your budget. Location determines how quickly your property will appreciate in value. Therefore, it is vital to choose the location carefully when buying land.
- Finding the Market Value of the Land- Finding the market value of land can get complicated when compared to other real estate niches. There is no particular way to determine 100% accurate market value of the land. However, still there are enough ways by which you can obtain the real value of your property.
If you really want to discover the market value of land, analyze several factors.
Firstly, check the property’s location, size, and dimensions. Then, check the prices of similar properties in proximity, potential buyers, road access, etc. Besides, you can even conduct thorough research and get in touch with the rural land experts.
Despite several investment options available, land outshines its alternatives with the benefits and interests it grants. The land is potentially the best investment option even for small investors and buyers with a modest budget. However, the return on your land investment will entirely depend on your strategy. If you buy land to use as a rental property, make sure it has features and structures that can attract maximum tenants.
On the other hand, buyers who intend to earn through farming must also choose fertile land in an appropriate location.
We hope this blog must have answered your questions and cleared up all your doubts. If you still need to ask something then do not hesitate to contact the experts at Raine & Horne, Land Victoria.