If stocks aren’t for you and you don’t want a lot of work, investing in land is a great investment possibility. It doesn’t seem very exciting, but in some ways, that’s the entire point. Anyone can invest in land, and the process is easy from start to finish. You’ll rarely encounter surprises, and you can invest as much or as little as you want.
Land is a Finite Resource
There’s never going to be more land. The earth is pretty much done setting up, and when land in desirable areas runs out, someone is going to need to buy that land from the person who owns it. Land won’t collapse like the stock market, because it will always be valuable. As long as there are people looking for places to live, there will be someone looking for land to build on.
It’s Easy to Choose Your Price
Land doesn’t always come at a set price point. Both cheap land and expensive land are relatively easy to find. If you’re buying the land directly, it’s easy to bargain. If you don’t want to meet the whole asking price, you can negotiate. If the land has been up for sale for a while by someone who has no plans for it, you’ll probably be able to get a good deal. It never hurts to check Gumtree for cheap opportunities.
Competition is Low when Investing in Land
Most investors come in with big wallets. They want to buy up whole residential or commercial properties. This leaves competition low for undeveloped land. Eventually, that land will need to be developed, but people like property investors don’t want to put in the time and money to start from the ground up. Developer projects take a long time, and this causes them to buy slowly. All you need to do is buy the land before they do.
Maintenance is Easy
You’re never going to have to worry about a leaky roof or broken plumbing on a plot of land. Not a whole lot can go wrong. There’s no structure to get damaged or become run down. If you’re fully committed to keeping the land in tip-top shape, all you need to do is mow the grass once in a while.
You Can Buy Land Anywhere
Thanks to the internet, you can buy land in any part of Australia, or any part of the world. You don’t even need to see the land to be able to purchase it and sell it at a higher price. If you research the area and you can tell that the area around the land is beginning to be built up, you probably won’t even need to hold onto the land for long.
You Only Pay Once
When you buy a house, you’re continuously paying for it. Unless you have a massive amount of cash on hand, you’ve got a mortgage to contend with. Land is a lot less expensive, so it’s easier to purchase it with cash. You don’t have to worry about missing a payment – there’s nothing else to pay for. When property taxes apply, they’re usually very low.
The Potential for Return is Great
Development tends to crawl. As more people move to an area, new businesses open up and things like homes or apartment buildings are constructed. If you purchase land just outside of that crawl, things will eventually catch up to you. Someone is going to be willing to pay you top dollar for that land because they see it as the potential for greater profit. You can double or triple what you spent on that land by signing it over.
Investing in land is just as perfect for lazy investors as it is for smart investors. If you’re looking for a great entryway to investment, you’ll likely find it in land.