From the video:
In this video, Felicia talks about the 3 reasons why land should be your first Charlotte County Florida real estate investment. (There’s actually 5 reasons, but the first 2 are incredibly obvious.)
It’s a simple fact that there just won’t be more land than there already is (maybe in the meta verse!). The supply is limited, and because the population is increasing, land will always be in demand, making it an excellent investment.
Land offers various investment opportunities from single-family to multi-family, commercial and agricultural, and even land for infrastructure. Depending on the type of land you’re interested in and the location, land is generally much more affordable than a developed property. Just remember, no matter what kind of real estate you’re buying, location is the first key to success, followed closely by the price, as the two most important factors for real estate investors.
There are approximately 1.9 billion acres in the mainland US. Of that, only 2% of it is used for urban areas, or about 3.8 million acres.
Now, inside of that 2% lives 82.66% of the total population of the United States. Ok, so almost 83% of the entire population lives inside 2% of the total landmass.
You can see in the chart below that the trend isn’t changing. Even with this pandemic exodus, I don’t think this trend will change. Sure people are leaving big cities like San Francisco and New York, but they’re moving to other urban areas like Austin or Miami. They’re not moving to a village in Idaho with a population of 200 people. They’re moving to other, smaller urban areas. But still urban.
What does this tell you? Location is crucial for real estate investments. Everyone knows this, you hear it all the time. Once you see the numbers and the data laid out in front of you, it’s hard to ignore. So this was an obvious one, but still important to reiterate.
Good news here, Florida fits the bill for the location requirement.
The population and net migration for Florida has been growing steadily. Over the past 10 years, the population of Florida has grown by 14.6%. More and more people are relocating or retiring to Florida.
Charlotte County in particular is a great spot to invest because it’s not as competitive as other areas (like Miami-Dade County), yet it enjoys population and economic growth.
Once you have the general location ironed down, you can get macro with it and look at specific subdivisions, neighborhoods, or other custom areas.
❗️Pro Tip❗️: You can use data and tools such as the 2020 Census and the Census Flow Mapper to help you figure out locations (take a look at what areas have positive net inbound migration).
Drilling down deeper, once you have the general location, you need to make sure you’ve done your homework, make certain the land is accessible by road, and that there will be access to utilities.
You will also want to be sure that the owner can use it for the purpose intended, considering zoning laws and possible environmental protections that could be of issue.
Now that the obvious is out of the way, here are 3 supporting reasons why land should be your first Charlotte County Florida real estate investment.
Time
Because you are just beginning your investment journey, you have time for the land, a reliable investment that is always in demand, to increase its value over the years. This steady rise in value is one of the reasons why land should be your first All real estate investment.
If you purchase in a good location for the right price, you could turn a tidy profit within as little as a decade. For example, if you take a look at the chart below from realtor.com, you’ll see that in the past 4 years, the median list price for real estate in Florida has gone up.
Sure there have been dips and fluctuations, but the overall trend has been onwards and upwards.
Unfortunately, buildings depreciate over time, meaning they decrease in value as time passes unless well maintained. So, when property values have increased, while it may seem this represents the actual value of the buildings, what these numbers are telling you is that the land is worth more because of the location.
Developers will buy real estate because of the location – if the building is awful and outdated, they’ll tear it down and put up a new one.
Competition
While the housing market condition is no secret, you don’t typically hear reports about a boom in the land market. This lack of competition is another of the reasons why land should be your first Charlotte County real estate investment.
Because the competition is currently low, there’s no need to worry about bidding wars pushing the sales price above market value. So, depending on your plans and budget, you can begin building your real estate portfolio and pathway to passive income in your retirement years with an extremely modest investment.
Competition is low now, but it could go up. If you’re planning to get into Florida real estate – you may not want to wait. A study published the by University of Florida estimates that if growth continues, by 2070 more than a third of the state will be developed!
You can see below the difference in development, the red sprawl. The dark green areas are protected. We’re running out of room!
Simple
Undeveloped land is relatively simple to own, which is a great reason why land should be your first Charlotte County real estate investment. You don’t have to wear all of the hats of a landlord, and there are generally little to no maintenance costs.
Your investment in the land is secured by the state of the land, in its natural form; no one can steal it by picking up your land and walking away. You won’t have mortgage payments, and typically you’ll pay very little in insurance and taxes. Often, the transaction can be virtual, with the advances in technology making it even easier.
Compass Land USA can help you find the perfect piece of land and help you begin building a real estate portfolio and growing your investment business. Whether you’re looking for one property or you want to jumpstart your career as a real estate mogul and buy large parcels, ask one of our professional investors at Compass Land USA about our steady inventory of the best land available in All.
At Compass Land USA, we know how important communication is. The pros at Compass Land USA are happy to help you answer any questions you may have about the process or concerns about financing or other hurdles you face, with no obligation. Contact Compass Land USA at (313) 349-0434 today!
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