7 Solid Reasons to Invest in Land Today

Everyone touts about the benefits of investing in real estate, but what about land? The general consensus has always been that land is not a worthwhile investment. Why? People falsely believe that land won’t produce income. It just sits there. It’s a boring investment, right? Wrong.

Land can produce a serious cash flow, and right now, it’s one of the best investments you can make. Here are 7 solid reasons to invest in land today:

1. Land is Limited

Why invest in land? Because they aren’t making any more of it. Land is limited in quantity, which makes it a valuable resource. And if you choose to invest in a growing area, people will be vying to get their hands on your lot.

As the population continues to grow and cities are expanding outward, land will become scarce and therefore, more valuable. Whether it’s a couple looking to build their dream home or a corporation looking to develop a new shopping plaza, there will always be demand for land. In areas where growth is high, demand will be even higher.

The true value of a land investment can be realized in the long-term, when vacant lots in the surrounding area have all but disappeared and demand is at an all-time high.

2. Land is a Secure, Tangible Investment

You can’t hold stocks or mutual funds in your hands. They can disappear in the blink of an eye. But land? Land will never disappear. It’s a tangible investment that you can literally walk on and touch with your own two hands. Because there are no existing structures, there’s no risk of depreciation. It won’t wear out. Nothing can be stolen, and nothing can be broken. Land is a long-term investment that’s safe and secure. No one can take it away from you.

3. Land is a “Hands Off” Investment

Maybe you like the idea of investing in property, but don’t want to have to deal with finding tenants, calling a plumber at 3AM or any one of the other hundred issues that come along with renting property.

Real estate investing is still a lucrative option, but it comes with its own fair share of headaches. It also takes a great deal of experience to understand the ins and outs of this investment option.

Land doesn’t need to be “babysat”. It’s completely hands off. You can let the property sit there for 5, 10, or even 20 years, and nothing will happen. It won’t deteriorate, and it won’t fall into disrepair. As a land owner, you never have to lift a finger to do anything with your property – unless you want to. It’s the ideal investment vehicle for anyone looking for a hands-off investment.

4. Land is an Inexpensive Long-term Investment

As a long-term investment, land is very inexpensive to own – especially if you can buy the right plot of land at the right price.

Think about it – land doesn’t come with:

* A mortgage payment
* Utility bills
* Mortgage insurance
* Building maintenance costs

Property insurance and taxes are negligible if you buy in the right areas. And you never have to worry about losing money because you can’t find tenants for your property.

In a way, land is a “set it and forget it” kind of investment that costs very little to maintain.

5. With the Right Tools, Land Can be Bought and Sold without Ever Seeing It in Person

You wouldn’t dream of purchasing a piece of real estate without seeing it in person, but with land, you can buy a lot without ever laying eyes on it. With the right research and tools, you can smartly invest in land without ever visiting the property.

When you buy real estate, there are dozens of things that need to be considered:

* Is it in a location that will sell?
* Does it have a newer roof?
* How’s the plumbing system?
* Is there anything wrong with the foundation?
* How much updating does the structure need?

You can’t possibly buy real estate without seeing it first. Because there are no structures involved, there are no lengthy inspection processes and fewer things to worry about when you purchase land. You’ll still need to do a fair amount of research, but it is possible to invest in and sell a fantastic plot of land without setting foot on it.

6. Land is Easy to Invest In

Investments can be complicated. There’s a learning curve no matter which vehicle you choose. But land is a relatively easy beast to tame. You don’t have to worry about renovations or construction. You don’t need to be an expert in flipping houses. More often than not, the only thing you need to be concerned about is whether or not the land is buildable.

If someone else can build on the land, there’s potential for the plot to be a valuable investment.

7. Land Owners are Highly Motivated to Sell

Land owners are almost always highly motivated to sell. Why? Because they don’t have an emotional connection to their investment. They’re absentee owners. They don’t live on the land, and it’s probably not producing any income for them. For this reason, they’re highly motivated to sell, and many times, for a rock bottom price.

A lot of land owners don’t know how to optimize their land to produce income, so they’re quick to jump at the chance to sell. This can result in opportunities for you to snag valuable plots of land at very low prices.

In addition, land investing comes with very little competition. Why? Because most investors are still focused on homes, commercial properties and apartment communities. As long as people continue to believe that land is a “weak” investment, you’ll have little competition to deal with.

Land is a huge investing opportunity, but it’s not without a few caveats. You need to know where to look and what to look for. That said, land will always be in demand and is a tangible, long-term investment that can produce some serious cash flow if you play your cards right.