Land Investment: why you should start buying today
During the last 5 years, the property market has been in an upward trend, with the exception of some short periods, especially in United States. Here is some information about investing in land, what are the advantages and why you should start investing today.
Although real estate prices could continue to grow, with the potential for prices to be higher in the next 4 years, unless you are thinking long-term, I’d probably advise all investors to put their money in something way more secure than real estate. But, if you do it right, investing in land can be extremely beneficial for you.
So why and how can investing in a land be beneficial for your pocket?
During an economic recession, the number of properties available on the market increases quite dramatically. The price drop during the last couple of years, means you can currently buy land at a really low price, with the chance to sell it at some point during the next 15 years for double or triple the price you paid for it today. Although, if the price you are buying the land for is low, you should still find a professional and knowledgeable estate agent that knows the area and the local prices, especially if you are not familiar with the area yourself. When land is sold very cheaply, it could be for a number of reasons and you need to be sure you don’t get caught out.
The one main factor when considering buying land is of course the location. Location is the most important factor when investing. Placements such as near the sea, on a top of the mountain, or city centre are of course top selling points and usually command a higher price too, especially considering the investment would normally continue to grow.
Although real estate prices could continue to grow, with the potential for prices to be higher in the next 4 years, unless you are thinking long-term, I’d probably advise all investors to put their money in something way more secure than real estate. But, if you do it right, investing in land can be extremely beneficial for you.
So why and how can investing in a land be beneficial for your pocket?
During an economic recession, the number of properties available on the market increases quite dramatically. The price drop during the last couple of years, means you can currently buy land at a really low price, with the chance to sell it at some point during the next 15 years for double or triple the price you paid for it today. Although, if the price you are buying the land for is low, you should still find a professional and knowledgeable estate agent that knows the area and the local prices, especially if you are not familiar with the area yourself. When land is sold very cheaply, it could be for a number of reasons and you need to be sure you don’t get caught out.
The one main factor when considering buying land is of course the location. Location is the most important factor when investing. Placements such as near the sea, on a top of the mountain, or city centre are of course top selling points and usually command a higher price too, especially considering the investment would normally continue to grow.
Most of the banks are offering their clients a deposit interest of approximately 6% interest to attract as many land investors as possible. Currently, you can buy land with an interest return of approximately 6%, which means you can enjoy a capitalization of your property, when and if the price increases again.
You need to be sure of the reason why you want to put your investment into land, it’s not like stocks and shares in a company. You might be thinking about building a house or thinking to sell the land in the future to a company, so they can build on it. You should treat this as a long term investment and ensure you employ thorough research by both yourself and a qualified agent. There are different kinds of land to purchase and the usage allowed is normally determined. You need to research what kind of land you want to invest in and be aware of all factors that might affect selling your land in the future. Such things as, ground collapsing due to unstable land, highways/roads nearby that might produce noise, or potential building issues, natural disasters in the area such as flooding and local climate (such as tornadoes, rain etc) that might affect your land.
It’s understandable that when investing in land, it can make you feel uncomfortable because you might be unfamiliar with the process of choosing and buying. I suggest finding a trustworthy agent and make sure you thoroughly research the locality (you can never do too much) because ultimately investing in land can be really beneficial for any iconic man. A wise land investment is a safe bet. It will help you with your future endeavour as it can serve as a guarantee and you can always sell it at a profit.
You need to be sure of the reason why you want to put your investment into land, it’s not like stocks and shares in a company. You might be thinking about building a house or thinking to sell the land in the future to a company, so they can build on it. You should treat this as a long term investment and ensure you employ thorough research by both yourself and a qualified agent. There are different kinds of land to purchase and the usage allowed is normally determined. You need to research what kind of land you want to invest in and be aware of all factors that might affect selling your land in the future. Such things as, ground collapsing due to unstable land, highways/roads nearby that might produce noise, or potential building issues, natural disasters in the area such as flooding and local climate (such as tornadoes, rain etc) that might affect your land.
It’s understandable that when investing in land, it can make you feel uncomfortable because you might be unfamiliar with the process of choosing and buying. I suggest finding a trustworthy agent and make sure you thoroughly research the locality (you can never do too much) because ultimately investing in land can be really beneficial for any iconic man. A wise land investment is a safe bet. It will help you with your future endeavour as it can serve as a guarantee and you can always sell it at a profit.
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