Vacant land is one of the most overlooked and misunderstood real estate investments in the world. There is a widespread assumption that vacant land is a pointless investment because (some might believe) it…
- Doesn’t produce income.
- Just sits there and nothing happens.
- It’s just boring.
It’s an unfortunate misconception, because the truth is, vacant land is capable of producing some serious cash flow. It’s one of the best investments on earth because of it’s hands-off nature and versatility. The simplicity and stability that come with owning the right piece of land can far outweigh the myriad of problems that come with any other type of real estate. So here are 5 reasons why you should buy land and diversify your investments.
1. With vacant land, you don’t need to “do” anything to the property.
Forget construction! Forget renovations! You don’t need to be an expert or know anything about how to rehab a property yourself. In most cases, you really only need to know one thing: “Is the property suitable for what I want to use it for?” As long as someone else can use the land for its highest and best use, a huge part of the battle is already won.
2. Raw land is a “hands-off” investment.
Have you had enough of dealing with problem tenants? How about toilets, bugs, mold, lawn care, leaking roofs, burst pipes, broken furnaces, and the hundreds of other issues that come with owning buildings? Vacant land doesn’t involve ANY of those things. Once you buy it, it sits there, it behaves itself, and nothing happens.
3. Land is very inexpensive to own as a long-term investment.
When you buy a piece of land for the right price, there are no mortgage payments to make, no utility bills to pay, the cost of property insurance is nominal (if you have it at all), and property taxes are incredibly cheap. If you want to park your cash somewhere and forget bout it, vacant land could be the investment vehicle you’re looking for.
4. Land gives its owner peace of mind.
Think about it: land is a long-term, tangible asset that doesn’t wear out and doesn’t depreciate. Nothing can get broken, stolen, or destroyed. It’s a hedge against inflation and is a great asset to pass down through the generations.
5. They aren’t making any more of it.
Most people don’t think of vacant land this way, but the reality is that land is a precious resource with limited quantities. Especially when you purchase land in the path of growth, you will find yourself with a finite asset that a lot of other people want to get their hands on. Stocks, bonds, mutual funds, and 401Ks all make sense in certain scenarios, and so does land. If you go into this with the intent of holding the right property for the long-term, it can make a lot more sense (and be a lot more profitable) than any other retirement vehicle out there. And YES, you can use your retirement account to invest in vacant land!
Land investing is a huge opportunity!
Land investing is one of the most powerful strategies used to build a real estate investing portfolio. There are significantly less risks, value continues to rise when you buy in the path of growth, and you can start with less than $500 dollars! Where else in real estate can you do that?
You can reserve your first, or next, investment property with us at American Wildlands for just $499 down! We offer options to fit anyone’s budget including a discounted cash price, or if you need more time, we can customize a down payment and monthly amount that fits your investing budget. No early pre-payment penalties. No credit checks. No problems!