Often times, we have money and don’t know what to spend it on and other times, we don’t have the money yet and we think of what to use it for when it comes- a land.
According to Advanced English Dictionary, land is a material in the top layer of the surface of the earth in which plants can grow (especially with reference to its quality or use.) It is an extensive landed property (especially in the country) retained by the owner for his own use.
Land can become a fantastic investment. Many of the world’s wealthiest individuals have made their fortune from buying and selling land. Year over year, land typically produces income for those who rent it or develop it. As the supply of land decreases while the demand increases, land can continue to increase in value over the long term.
When thinking about investing in real estate, bricks-and-mortars come to mind, but the most basic real estate investment strategy has always been a land investment. It is a raw investment, it gives you the ability to start something from scratch and to build basically anything you want to. Alternatively, it gives someone else the opportunity to build something on your land when sold out. The misconception about purchasing a piece of land is that it generates no money, it won’t have a rising value, and that is generally undesirable. According to landowners, these are huge misconceptions. There are lots of benefits attached to owning land.
What makes buying land an attractive option is the flexibility of location. Land can be used for residential real estate, commercial estate, farming purposes, or left to appreciate. Land as a real estate investment strategy is something you should consider if you have the resources and shrewdness to make it generate money.
There are lots of reasons to consider when it comes to purchasing a piece of land. It includes;
Land can be used for so many options that will suit basically anyone’s needs and ambitions.
◾Residential and commercial buildings: The idea is that you can basically rent, sell or even develop the land depending on your financial expectations and ability. Renting out the land and allowing a residential building to be constructed means you’ll be getting a steady income and increase the land’s value because of the property built. Selling the land to commercial or residential investors for added value after some years is another option. Developing land, however, is the least common because of its extreme costs, some develop land massive enough for commercial properties. A perfect example of that would be a small shopping mall.
◾Farming and livestock: Many land owners who buy their estate in rural or suburban areas have the attractive option of renting it out for many years for farming purposes. This serves two main purposes for a land owner, generating money from rent and from appreciation.
2. It is the greatest form of investment.
When it comes to buying a land, not minding the location, it doesn’t depreciate. The fact that land has no depreciation value is another reason that makes it a great real estate investment. Land can’t have a depreciation value because simply it can’t be destroyed, moved or affected negatively under any circumstances, natural or unnatural. So when investing in land, an investor is able to rely solely on appreciation, worst-case scenario. The more the area becomes advanced, the more it appreciates. You should not be surprised when you hear a land is #500,000 and in 5 years time, it increases to #50 million.
3. There is no Competition.
◾This is a true fact because lands are different in sizes, location and even shape that you can never find the same exact land. Compare that to property owners who have to work hard to fight off competition in their market. If you are going to buy land, then you will find it easier to acquire it without going through the process of bidding with other competitors.
4. Limited Management Issues.
The major difference between owning land and residential property is that land doesn’t need any maintenance or attention while properties require a lot of work and time and resources. To be profitable in land purchasing, the most important criterion is that the land has to be suitable for construction. For investors who are too busy to deal with tenants, maintenance and managerial issues, then land is a great strategy for making money in real estate passively.
5. Getting a piece of good land is rare.
The thing about land ownership is that you will be the owner of an investment that is considered limited or rare. We are running out of land. With overpopulation around the world, empty lands are becoming even more limited with every passing year. In some parts of our country- parts like Lagos and Port Harcourt- when you own a piece of land, you are regarded as a king because it is quite difficult to get a land in those part of Nigeria.
6. Cheaper or No Expenses.
Finally, is owning a land lot more expensive? Owning a vacant land has the lowest expenses in real estate investments because you avoid utilities, pay fewer taxes and fewer mortgages considering that you purchased an empty land.
Land as a form of real estate investment is possibly one of the best options for people who are not cut out for the hard work of residential real estate properties. The huge risk that lies with buying land is the consequence of not being able to rent out the land. Moreover, if the land was bought with the intention of having a tenant build a property, then you will have to construct a property to rent, which is very costly. Another risk that can come with land purchase is the extreme shifts in value – the value rates ca rise extremely slowly or sky-rocket in a week. Nevertheless, if you are looking to add into your dimension of investments with something new, then land ownership is the thing for you and teddpropertiesrealty.com is the place for you to visit for vast piece of land in different locations in Nigeria, real estate consultation, property merchant and developmental services.