7 reasons why buying land is super smart
1. You don't need to do Anything to a vacant lot
No construction. No renovations. You don't need to rehab a property or do any of the work to flip it. Most of the time, you only need to know one thing: Is the property suitable for what you want to use it for?
2. It's a hands off investment
No tenants, bugs, mold, leaking roofs, busted pipes, or any of the other many problems that comes with owning a building. Vacant land just sits there and hangs out, nothing happening.
3. Far Less competition than home buyers
You're less likely to get into a bidding war when buying a house than when buying land.
4. Land is very inexpensive to own as a long-term investment.
No utility bills, often times no mortgage payment, property taxes are cheaper, and if you want to park your cash somewhere and forget about it, vacant land could be the investment you've been looking for.
5. Land gives the owner a peace of mind
Think about it: land is a long-term, tangible asset that doesn't wear out and doesn't depreciate. Nothing can get broken, stolen, or destroyed.
6. They Aren't Making Any More of It.
Like precious resources, land is limited in quantity. Especially land purchased in the path of growth. You'll find yourself with a finite asset that others wish they had. Stocks, mutual funds, bonds, 401K and the like all make sense in the right circumstances - and so does land!
If you go into this with the intent of holding the right property long-term, it can make much more sense (and be a lot more profitable) than any other retirement vehicle out there.
7. Location, location, location
Which is a better investment? A high-end home in a subpar location? Or a subpar home in a high-end location? The subpar home in a high end location is almost always a better investment because you can change the home - knock it down and build new, renovate it, rehab it, etc. But you can't change the land. You can't change the location. What's the best solution for this? Build your dream home on an incredible slice of land.