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Posted 13 November 2020
Land is a great investment. It's what we stand on every day we walk around. I know this is weird, but it’s true. Back in the day’s countries fought to claim ownership of an area. You might think since it doesn’t produce income, and it could take years to sell, but I tell you once more, “They are great investments.”
If you are a developer, you can buy lands and let them sit for a while; then build when it’s time. Billionaire John C. Malone knows the importance of owning land; that’s why he owns 2.2 million acres according to this article in USA Today.
Although these billionaires might not see land buying as an investment, they know the potentials. Like it or not, they make money from these lands. With millions of acres, you will surely come across something valuable. If it’s not gold, it’s oil, lakes with fishes, and medicinal herbs that you can sell to pharmaceutical companies for millions of dollars.; you never know.
Also, their lands are usually not anywhere close to the city. Some of these rich folks see land buying as a fun thing to do. But as an investor, there’s no fun money; you have to make a profit as soon as possible.
Some cities and towns are usually not as developed as others, but you can still make money there. There’s something called development. A city or town might not be as developed as it should be today, but maybe in the next five years, it could become even one of the most promising places.
Some millionaires and billionaires invested in neighborhoods that looked poor, and they waited for many years, hoping it would get better. And you know what happens when it gets better, right? The price goes up, and when the price goes up, you will see companies and people begging to buy your land.
Below are the reasons why you should buy land.
1. No overhead cost
When you buy land, there is no overhead cost or maintenance needed. You just have to wait for it to grow in value. As an investor, before you buy land, you should have a plan. If you are going to develop it into a tourist attraction or want to buy and sell, it’s up to you.
2. Land is precious
It might take many years, even decades, for you to see a profit from land investing, that doesn’t mean you can’t buy and profit within your expected time frame.
These are the reasons why land is precious:
Yes, even if you clear a bush, the land is always there. There could be earthquakes or erosion that might scare buyers from your land. That’s why you need to know the land you are buying. You can read this article by BiggerPockets to find out where the buy and hold strategy make sense.
Yes, in great locations and even in some countries with a significant population, owning land can be precious because it’s either challenging or costly to get. In this article by The Economist, you will learn more about land scarcity/.
Agriculture is essential. It’s the reason why we are all alive. Without agriculture, we can’t have food. The land is significant. If you buy land so that you can cultivate it, then you need to have a plan. You have to take it as a business and know that it would require some investments.
You have to plan on the companies that will supply the tools you’ll need and the structures you need to develop. You also need to talk to your lawyer so that you can get the necessary documents required to operate farmland (If any).
In this blog post by Treehugger, you will learn what you need to know before cultivating your land.
Before you buy land, you should think of an exit plan; it could be having a buyer in mind. Some people believe that when they purchase land, they’ll sell it to someone or a company they think would be interested in it. Although this is risky, it only gives you hope that there’s a buyer for the land.
In this article by Accidental Happies, you’ll learn what you need to do before buying a land.