When it comes to real estate investing, many people think about purchasing property. And why not? A lot of money can be made this way, whether the property is used as a buy-for-let or as a fixer-upper to sell at greater value down the line. Owning a piece of land may not hold the same appeal, and would-be investors may wonder why it’s a viable investment. If this is you, we are here to tell you why setting your sights on land is a rock-solid investment.
1. You can do what you want with it
Well, within reason of course. Buying a piece of land and turning it into a venue for a rock festival may irritate the neighbours if there are properties nearby. However, provided you are adhering to local laws, and with respect for local inhabitants, including the wildlife, the land is yours to do with as you please. A camping ground? A family park? A wildlife preservation centre? There are many choices, with viable income opportunities and endless ways to serve the local community.
2. There are less expenses
When buying commercial property, you are dealing with money lenders, mortgage providers, maintenance costs, etc. You are cutting out a lot of these expenses when buying land, and the initial outlay is often a lot cheaper too. There is great land for sale all over the country, and you can buy according to your budget without the overheads that property investors regularly face. You can then do with the land what you will, whether you build on it for your purposes, hire it out to others, or do absolutely nothing at all. The choice is yours.
3. You can become an eco-warrior
In buying land, you are preserving the limited land we have available. This is perfect for anybody interested in conservation, whether you leave the land untouched, or create new opportunities for natural beauty. This will at least stave off property developers looking to extend our concrete cities. Using the land for farming purposes, or as a community garden, orchard, walking ground, or whatever, the land will benefit you and anybody else interested in the long-term future of our planet.
4. You have buyer’s piece of mind
Buying property is tantamount to disaster. From dodgy tenants to the endless repair costs, the property owner will always need to be on hand to deal with whatever mishap has befallen their investment. Not so with land. You will need to do your research before buying, of course, as there may be environmental issues, such as flooding areas. However, provided you are investing in solid ground, you can sit back knowing you have bought a tangible asset that requires little maintenance, and won’t depreciate in value.
5. There is less competition
Most investors opt for property, so you will face less competition when buying land. Why is this important? You have a negotiating advantage, for starters, and you may be able to buy the land much lower than the asking price. Then you can capitalise on demand. If you own the only piece of land in a particular radius, you can charge as much (or as little) as you want to anybody wanting to use the land for a particular purpose. That rock festival we mentioned earlier? Think of the money you can make hiring it out to vendors and entertainment acts, though you may need to foot the clean-up bill afterwards.
We hope we have given you a little bit of foresight into why buying land is worthwhile. It’s not for everybody, and property investing may still be the area you would prefer. Still, if we have peaked your interest, seek further advice on the way forwards.