Vacant land often seems like a bad investment to many, especially in real estate. But, it can actually be more profitable than real estate. Knowing the zoning rules of the land is key to making it a good investment. Here are some reasons why buying vacant land is a smart move.
Low purchase price
Vacant land is cheaper than properties with buildings, as long as they’re the same size and location. Landowners who don’t live on the land often accept lower prices. This is because the land doesn’t make money for them, unlike properties that do.
Minimum carrying costs
Land that’s not used has little to no upkeep costs. It also means no worries about tenants or repairs. The land just sits there, waiting for you to decide what to do with it. Plus, it’s hard to steal, so you rarely need to check on it.
High appreciation potential
Many think land doesn’t increase in value. But, that’s not true. Land can grow in value over time, especially in areas that are growing. Buying land in areas that are expanding can be a smart move.
Maximum flexibility/call your own shots
You can do almost anything with vacant land, as long as it follows zoning rules. You can build commercial buildings, factories, or even homes. Land is easier to buy than properties, giving you more freedom.
Explosive income potential
You can offer financing to buyers of vacant land, earning more interest. This is because many prefer this option over bank loans. It’s like having a steady rental income without the hassle of tenants.
With smart strategies, starting a business with vacant land is easy. Investing in undeveloped land is one of the simplest ways to build a business empire.