Investing in land has similar returns and opportunities as investing in real estate.This is certainly not a myth. Why? While all others are focused on buying homes and buildings, the smart and wealthy are investing in land. Let's look at some of the reasons why.
When buying land you reduce the risk of inheriting problems, in comparison to traditional real estate; no moldy vents, no broken windows, no rotted foundations.
Little to no maintenance required. Land doesn’t wear or tear. You don’t have to spend an additional wad of cash for upkeep.
Low Risk, High Reward
This is the magic combination for most investors. Land investments are stable and contain the potential to experience exponential growth. The majority of people think that a large upside has to contain a large downside. Smart investors would disagree, you just have to have a good nose for antifragile investments.
Land is a long-term investment and requires time to provide opportunity. You have the option to capitalize on major opportunities because of the optionality of land. It’s a blank canvas, who knows, the piece of dirt you bought for a song, could be sought after by a housing developer sometime in the future, or a mining company finds the area rich in a certain resource, or the topsoil is particularly good for growing grapevines.
A Robust Investment
We live in a world of volatile financial markets, broken banking, and fragile centralized systems. People are looking to offset this fragility and land provides a robust investment that counters such an environment.
A wise woman once told me; “Land, they’re not making more of it.” Rising populations bring increased demand for space, and with limited supply, land will only continue to get more valuable.
With the right eye and decent negotiation skills you can get incredible deals. Never buy top of the market land—smell out a sale, there are plenty.
A Flipping Paradise
You can flip land with no fixing-up required, no six-figure, two-year, renovations. Just buy and sit.