How Investing in Land Pays Off
Commercial real estate is around every corner. Properties such as apartments, offices, retail stores and industrial manufacturing buildings all fit under the commercial real estate category. But for these properties to exist, someone has to invest in the land to build it. Here are a few ways that investing in land can pay off!
High Return on Investment
Although this may not be the most glamorous strategy, purchasing vacant land can be a beneficial investment. According to Million Acres, if you invest in a good piece of land, you can make high double-digit returns and have a reliable flow of income. For example, if you were to buy vacant land and build a shopping mall, you can charge vendors rent and eventually pay off all the structures' expenses. Once everything is paid off, you'll have a steady income each month coming from the tenants. Of course, other monthly fees vary from region to region, but the return on investment can be significantly higher.
Low Cost & More Control
Depending on where you buy, raw land can be significantly cheaper than purchasing pre-existing buildings. Buying vacant property allows you to call the shots and requires minimal start-up capital. When most people buy raw land, they pay in cash to avoid dealing with banks, giving them more control over what they do with it. If you have full ownership of the land, you technically don't have to do anything with it. It's a low-maintenance investment that will accumulate interest without you doing anything.
High Demand for Land
Land will always be in high demand because it's so limited. There's a finite amount available, making it a hot commodity to many investors. As the population increases, the need for more buildings and space for businesses will increase exponentially. According to Fortune Builders, raw land follows the same supply and demand structures as other properties. It's guaranteed to appreciate over time; the only unknown factor is how much it will grow.
Whether you're brand new to investing or a seasoned professional, purchasing land can prove to be a beneficial investment. Need help looking for vacant properties? Contact us through the form on our home page, and we'll be happy to help you find the perfect location.