From the video:
People invest in a lot of things; stocks, bonds, businesses, homes… But oftentimes the benefits of land investment go overlooked. So why buy land? Because it is a safe and steadily appreciating investment that requires little to no maintenance.
Check out our latest blog below to learn all about the benefits of land investment!
Highly Motivated Sellers
Historically, some of the most profitable real estate deals have been found in land investment. Most notably the Alaskan and Louisiana Purchases.
Land sellers often have a low attachment to the property and will be open to hearing most reasonable offers. If they live out of state or in a location far from the land, they will feel even less attachment. Usually, land doesn’t generate the emotion that a home or other structure does.
You can look for these “absentee owners” to find some great deals on land! Compass Land USA works with land sellers every day, and we can help you find the lot you’ve been looking for.
You Can Start Small
Typically getting a loan to buy land is more difficult than getting a traditional mortgage. You will need near perfect credit to get a loan for a lot. Because of this, many people buy land in cash or use owner financing.
Don’t let this intimidate you! Depending on where you’re located, you can find a building lot for only a few thousand dollars, especially in the more rural parts of Arizona.
You can find really cheap land in Arizona, for less than 2 or 3 thousand dollars. You can learn more about the cheapest places to buy land in Arizona here.
Plus, when you pay in cash you are not throwing away money on interest payments or biting off more than you can chew. Paying in cash makes the process run smoothly and quickly! It’s the fastest way to get a land investment under your name.
Less Competition
The land market statistically has fewer buyers. People often overlook land as they are looking for investment properties or opportunities that will provide them with a steady income.
Lots of investors like excitement. They prefer stocks, bonds, and cryptocurrencies. To these types of investors, land investment is boring. The land does not make you money each month (unless you are leasing it to a rancher or farmer, etc.) but it will, however, make you money on the backend once the property sells.
The goal is to see the potential of a parcel of land that nobody else does. Research the area, and learn about future developments. Position yourself to buy land that is soon to be “in demand!”
Low Maintenance
Land is relatively low maintenance in comparison to other real estate investments. The beauty of buying land is that you won’t ever have to make repairs.
There are no leaky roofs or faulty electrical circuits with land!
Depending on the location, you might need to pay the city for routine maintenance, mowing, and clearing if the lot becomes overgrown. But in comparison to property management, this is a relatively small and painless task. You can probably hire a local kid to manage the grass for you.
Other than annual property taxes, expenses are typically non-existent. And honestly, in rural and less populated areas of Arizona, property taxes are sometimes as low as a couple of bucks a year. That’s not exaggerating. You can own an acre of land in rural Arizona and only pay $2 or $3 a year in property taxes. It’s pretty incredible.
Land is something you can usually buy and walk away from. It is a “hands-off” investment that basically sits there. When you are ready to sell, there it will be, just as you left it.
Low Risk Over The Long Term
As we said above, land investment can seem boring. But sometimes boring is good. Boring is stable. Most land will appreciate year after year. The longer you hold, the higher you can profit.
However, you will want to ensure your property tax payments don’t negate your profits. Land is oftentimes a long-term investment. Purchasing low in an up-and-coming area, then selling high once the land is in demand, is a quick and profitable way to invest in real estate.
If you are looking to buy land for your own use or as an investment, Compass Land USA can help you find the perfect parcel!
Fill out this form to let us know what you are looking for, or give our office a call today! (313) 349-0434
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