Why Buying Land in Bulk Might Be Your Best Investing Bet

You’ve been told time and time again that you should be investing your money. Letting your money sit in a bank collecting little to no interest is not a good use of your savings. Any financial advisor would suggest that you invest money that you do not need to live, rather than keep it in a low interest savings account.

And you’ll likely hear that you should be investing in:

* Stocks
* Bonds
* Securities

These are all great financial products when the markets are doing well. But it’s very hard for an investor, especially a small investor, to wake up one morning and find out that the stock market is tumbling. Losing half or all of your worth overnight is a difficult pill to swallow no matter your current financial situation. Just take a look at the global economy today on January 4, 2016. Today is a severe case of the markets simply tumbling. What has happened so far today?

* China's stock market dropped by 7%, causing the country to halt trading for the day.

* European stocks have tumbled across the board, down between 2% and 4% on the day.

* United States markets have fallen drastically as well, down 2% or more in early morning trading.

Maybe want to invest in a commodity, such as gold, instead. Unfortunately, this commodity has also tumbled drastically in recent years. Gold prices are expected to fall below $1,000 an ounce in the coming year, and this will further result in uncertainty in the future. Oil has also proven to be a bad investment, as prices have dropped nearly 40% on the year.

Sure, these investment products can help you boost your overall wealth, but they also fluctuate dramatically. While it’s too early in 2016 to be able to determine what will happen in the markets this coming year, if the first day is any indicator of what may occur, it’s going to be a rough ride for many of the world’s economies.

Land May Be Your Best Investment

Land investments are becoming evermore popular. Investing in land has always been a smart decision, but it does offer a slower return than a hot stock, such as Amazon, for example. While investors often overlook land, many invest in real estate based indexes. These are indexes where many people will invest in real state, and they essentially own a portion of the property.

A good example of this is investing in a real estate index where your money goes into several different avenues.
When you invest in this type of index, you’re likely going to find that a commercial outfit will be building a large structure, such as a shopping mall. The entity will be renting out the spaces. That is how they make money, and how the stock will rise as a result.

But you’re still at the mercy of another party. The best way to make money off of land is to purchase it yourself. With land, you have several different avenues to make money, and this is where the true investment materializes. Let’s take a look at a few of the ways you can make money off of land:

Land Values Increase

When you buy land, you can simply let it to sit, and watch it increase in price. The increase in price can be several percentage points each year, but it depends on where your plot is located. If you purchase land in an up-and-coming area, you’ll find that your investment grows much more quickly.

Many investors choose to hold onto land and sell it in the future. But owning land does have some responsibilities. You will be responsible for paying property tax on the land and any homeowner association fees if the land is located in an area where HOA fees are present. There's nothing stopping you from holding onto the land and selling it in the future for a return on your investment.

Farming Land

Farming is not for everyone, but it is a way to make a lot of money back on your investment. You to have the option of paying someone to farm the land for you if you do not know how to do it yourself, and sell the produce that is provided by the land. A lot of investors will essentially create a farm, get it up and running, and then sell it based on the amount of income the farm makes.

You also have the opportunity to rent out this farmland to other farmers, or use it as grazing land. This is, essentially, allowing someone else to utilize your property in lieu of a yearly or monthly payment. This is a great option if you want to hold onto the land and sell it in the future.

Build Up the Land

When you have enough capital, you can choose to build on the property. This can be a residential or commercial building. If the property is big enough, you can subdivide the lot and sell several different properties.
Building up a home on the property is one of the best ways to make a fast return on your investment, but it does require a lot of capital.

We recommend that you:

* Research home prices in the area.
* Get estimates for the cost of homes in the area.
* Judge your profitability based off of these statistics.

Timberland

If you're holding onto any piece of property for a long time, it only makes sense to utilize your right to grow timber. You’ll essentially be growing trees and selling the timber at a profit. Every species of trees different, so the time to maturity may vary greatly.

If you plan on keeping your land for the duration, ensure that you look into timberland as a great investment portal to make a lot of money without even having to sell the land in the process. You can pay someone to manage the property for you, and reap the benefits once the trees mature.

Land is an investment opportunity that not only increases in price, but is a tangible item. You can hold land, build on it and it won’t disappear overnight. As long as you pay your taxes, you will have a physical piece of property that you can call your own – unlike stocks, which are completely controlled by other individuals.