There are many things you can buy in the world that will increase in value. Real estate and investing in the stock market are both good investments. They are also the more common investment approach. However, there are many other areas to consider when investing your money.
Land is another common investment for people however, it is nowhere near as popular as it should be. One of the reasons why people don’t invest in land is because they don’t understand the process.
Investing in land can be a great asset to your portfolio. It is a way of diversifying your investments and finding something different to office buildings, houses, stock markets etc. Additionally, land is low-risk and sometimes can be high reward.
Let’s look into land investment and how it can be a profitable source of income in 2023.
A short supply of land means that land is becoming more expensive. If you want to buy land, you need to find something that is cheap. Luckily for investors, land is generally more affordable compared to others. If there is a short supply of land, that land you own will increase in value over a short time.
It Is A Tangible Asset
Another great positive about investing in land is that it is tangible. It doesn’t lose value like the real estate industry or stock market. No matter what is happening in the current market, the land will remain the same or gradually increase. This is a great reason why many people invest in land.
It Is A Less Competitive Market To Invest Your Money In
Unlike the stock market and real estate property, it is a far less competitive market to invest your money into. It is one of the main reasons why people don’t like to invest their money. Less competition means a more affordable price to invest in. Therefore, it makes it a much better investment compared to real estate property.
Land Is Undervalued
This is arguably the best positive with land investments. It is very affordable compared to other investments. Not only is land incredibly cheap but it can increase around 6% per year and sometimes, it can increase even more.
Another great positive about investing in land is that it doesn’t require maintenance when you own it. Sometimes it doesn’t require any maintenance at all. Furthermore, as the owner, you don’t need to worry about insurance either.
Can Be A Great Way To Make Money Safely
This is one of the safest ways to invest your money because you can guarantee the money will increase over time. Moreover, there is a lot that you can do with the land. Firstly, you can make use of the land by growing crops and selling them at a local farmers’ market.
Depending on the size of your land, you can also use it as storage for other people. Rent out your land so people can store their vehicles. All you need to do is build a storage shed or buy shipping crates where people can store their things and then you can charge rent weekly/monthly.
Something that many other people are doing is a place for people to stay. Then, they will rent out the property for people to enjoy a holiday away. It is great for people who want to enjoy a weekend away without distractions.
If you want to transform the land which you have recently bought, it is a simple process. Just make sure you have the planning permissions to make changes to the terrain. Once you have permission, contact a construction plant hire company and find the correct machinery you need to level out the land if it isn’t already. Next, you will need to reach out to construction workers to build the building you would like. If you are only building a garage, you might be able to do it all yourself, depending on how good your construction skills are.
Although money is returned at a much higher rate with property investment, purchasing land can be a more stable income over a long time. It all depends on what you do with the land. If you don’t want to do anything with the land that isn’t an issue either. You can wait for it to increase in value over the next five or ten years. You could even wait longer and use the profits towards your retirement pot. However, investing in property may be a better option if you can afford the deposit.
Investing In Land vs Physical Property
Deciding what the better option is can be difficult. You also must decide on your investment goals. If you want a large return, property investment is the better path. It increases more than land, making your ROI (Return On Investment) much higher. The issue is that there is a much larger risk when investing in land. If you are an older investor, consider buying land instead of property.
Another point about investing in property is that it requires a large investment. Therefore, you may not have the expenses to invest in the market straight away. That is why investing in land is the more favourable option for those who don’t have a large amount of money to invest. You may also require a commercial fit-out for your property.
If budgets are an issue, investing in land is the better option. However, if you are young and have a large amount of money ready to invest, investing in property is the better option.
There are many different types of investment routes you can explore. It is all about deciding your goals and how much money you wish to make. If you want a stable source of income, investing your money in land is a good option. The only issue with the land is it does not increase that much in comparison to real estate property and the stock market. Nonetheless, if you want to invest in something that requires little maintenance and can guarantee you profits in the near future, land investment is the safer option.
If you are waiting for the right time to invest in property, now is the time. There is no better time than the present for investing and the longer you wait, the more money you will lose over the years.