New real estate investors usually have a few thoughts about the value of land: family members have retired thanks to real estate investing, or they have friends who have bought and sold land parcels. These are 10 rational, concrete reasons to buy land.
1. The U.S. isn’t getting any bigger (and neither is the world).
Let’s get the obvious point out of the way – the United States isn’t annexing any more territory anytime soon, and nobody is making any more land. There’s a finite amount of land available for purchase. But what’s more important is that land in desirable areas – places that will develop in the foreseeable future – is even more limited.
2. It’s easy to buy land.
As long as you have a little patience, it’s easy to find land-investing experts who will walk you through each step of speculating, surveying and purchasing land. If you work with us at Land Banking Investment, you don’t pay a real estate commission, because you’re buying from the owners of the land.
3. Land is tangible.
In today’s world, many seem to have forgotten about investing in things you can touch. Because you can lay your hands on it, land is one of the safest of all investments. If you’ve ever doubted the value of land as an investment, you shouldn’t now – just think about the stock market meltdown. Land is the only asset that never went to zero.
4. Land has value beyond the first glance.
There’s more to land than what you see: the plans that surround it and what’s underground can exponentially increase the value of a parcel.
5. Land investments can be extremely profitable.
Development often increases land value by 200, 300, and 500%. Land development in particular is one of the most profitable forms of investment (and that includes bonds, stocks, etc.).
6. You don’t have to be wealthy to get involved.
People often feel that they can’t make land investments because they’re not millionaires. In fact, middle-class people make great land investors, partially because they are more familiar with land as an asset than others are. It’s simple to invest in land with leverage; also, you can control the amount of land you purchase. You don’t have to start with a lot – begin with a few acres, and watch your wealth start to grow.
7. Land doesn’t depreciate.
Even if you make an unwise land investment choice, you’re likely to keep up with inflation, not see a depreciation in the value of your purchase.
8. Land is a way to manage your own investments (and your own money).
Buying land is a good way to invest without the middleman. You control exactly where your money goes, how much of it goes there, and when you decide to sell.
9. Development is aggressively branching out.
In the last 25 years, the rate of land development has been higher than in the 50 years before that. Despite the housing bubble, developers are determined to expand urban centers and build transportation routes and industry centers in new places, especially in California. What you’ll see in your lifetime will astonish you.
10. The population is booming.
Dovetailing with our first point, consider the population boom. We aren’t making more land, but we are making more people: the increase in the population inevitably leads to a higher demand for land.