Investing in land and buying land is not a well-understood concept. Most people don’t know for sure how land buying works. And even fewer people understand how investing in land is a smart strategic move for diversifying your portfolio. You don’t want to be one of these people.
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 its hands-off nature and versatility.
After noticing misconceptions about the benefits land investments can offer, we’ve decided to bring some fascinating facts to light. Below are the surprising reasons to help you understand why land is a lucrative investment and will make you invest in land.
- Land Is a Tangible Asset
Investing in a vacant piece of land is significantly less risky than stocks. It cannot disappear or lose its value all of a sudden. In the worst scenario, currency and monetary values will have no stability. Regardless of the world economic situation, the value of land constantly increases.
Land cannot vanish or disappear like shares or stocks. If tomorrow the world decided that money was just a useless piece of paper and has no value, the land will still be something. It will be something tangible and physical that is yours, regardless of what the global economic situation is. Currency and monetary values may change, but ownership does not.
- Land Is Low-Priced
Unlike other real estate assets, the land is affordable and requires minimal effort for maintenance. You don’t need to pay utility bills, mortgages, or roof repairs and replacements. Another advantage is the owner of the land doesn’t need to pay for the insurance. Property taxes are the cheapest, so your property doesn’t demand unexpected costs and silently increases in value.
Your asset sits quietly in the background, costing you almost nothing and silently increasing in value.
- No Risky Government Legislations
Landowners do not need to worry about rules to maintain risk-free ownership of the property. Consequently, there’s no need to hire lawyers to ensure you meet government requirements.
The Dodd-Frank [introduced by Obama in 2010, as a response to a massive economic downturn in the U.S.] applies heavy rules to real estate but does not apply to vacant land.
- Land Gives You Peace of Mind
Land is the well-behaved, ‘golden child’ of investing. Land can’t be stolen or destroyed. No extra effort from you is required. There’s nothing to protect, maintain, or renovate. There’s nothing to ‘do’. Land in its natural state will always be worth something!