Is Buying Land Only a Good Investment?
Don’t Wait To Buy Land, Buy Land And Wait
Vacant land is a limited commodity in most communities. Land only purchases are sometimes seen as weak investments with limited potential, but when done the right way, land can be a sound investment that is highly profitable. When you’re educated about land investments, you can make the right choice. With families looking for more green spaces in smaller urban communities, the demand for buying land only is increasing. Call me to talk more about how good the Cornwall real estate market looks when it comes to investing in land.
Why Invest in Land
When you buy vacant land, you can create the property you want. The only question you need to ask, “is this land suitable for my needs?” You don’t have to worry about renovating or rehabbing a property. You have none of the problems that come with tenants or owning buildings. The land can sit there and appreciate in value. Although there may be fluctuations in the market over the years, in general, land typically increases in market value. Undeveloped land attracts low property taxes, making it affordable without the added expense of a mortgage.
What You Should Know About Investing in Land
Undeveloped land can be a goldmine, but investors do need to use caution. There may be a reason that the land is still vacant. The property itself may have issues. Mountain property can be difficult and expensive to develop. There may be easements that make it difficult to install septic, sewer or a water source. You should always check the property zoning so you know how you can use the property. Many lenders won’t finance undeveloped land easily. You may have to pay upfront for the property or buy with a large down payment. You may also use seller financing as a way to create a stream of passive income on land that you sell.
Land Investments Are an Opportunity
Housing prices are increasing, which can make it difficult to buy a home. Land can be more affordable, giving you the opportunity to use the land for a home, if that’s what you want. Land can be a good option in a tight market, as long as investors do their due diligence. There’s less competition on the market for land, which lets you get through the process with less stress and fewer headaches. The test will be what happens when you sell. Land in the path of growth can prove to be very valuable as an investment strategy.
Contact me now to find out more from a top real estate agent in Cornwall about investing in undeveloped land.