Investing in land can be a profitable decision since land is a limited resource, and its value usually increases over time. A piece of land owned is an asset, but only if it is managed correctly. For example, build a property, rent it out at a favorable price, or use it in some other way useful for the owner. A plot of land can be sold if an urgent need for money arises. At Christian Home Buyers, we buy land, and for this, we have the necessary funds to complete the transaction as quickly as possible.
What types of land investments are there?
Passive investments involve investing in land for subsequent sale when the market value of the asset increases. Passive investments also include purchasing land to rent it out.
Active investments include changing the purpose of a site, building residential or commercial real estate on it, or engaging in other activities that increase the amount of profit received.
Which land to choose?
Investing in land will bring profit if a number of important factors are met. It is necessary to know the functional and territorial zones in which the site is located in order to understand what objects can be built on a given land plot and how much the value of the land plot may increase or decrease in the future. In addition, it is important to collect information in advance about all encumbrances (security zones, sanitary protection zones, development regulation zones, etc.) that could potentially prevent the construction of the desired object on the land plot.
How to invest in land?
Here are the most popular investment methods:
- Investing in land for resale is the easiest way. Earnings when choosing liquid real estate can be up to 40%.
- Investing money in a plot of land to construct a residential building and then selling the property requires a large amount of funds at the initial stage.
- Investing in land for commercial real estate development is a long-term investment option suitable for experienced investors.
Investments in land, is it possible to make money?
Purchasing land as an investment allows you not only to save money, but also to receive additional income, the amount of which depends on the method of investment and the characteristics of the purchased plot.
Investing in land is profitable:
- competition among investors is less than, for example, in the new buildings sector;
- the land market does not “react” as much to economic crises and recovers faster after them;
- land prices have shown steady growth over the past decades;
- liquid plots are always in demand;
- such objects are not afraid of natural disasters.
