If you’re looking to invest in land in the next 6-12 months, you’re probably wondering what the COVID-19 pandemic means for your plans.
It is a known fact that if you are looking at long-term investments, land is one of the best options. All you need to do is invest at the right time. For example, you can invest small in a developing area now and wait over the mid to long-term, to enjoy the price appreciation.
Investing in land is a significant investment, and young persons in particular, should consider investing in this asset while in the early stages of their lives.
The economic impact has forced many to reconsider their current lifestyles. So before investing in land, take time to consider the reasons for purchasing property, the type of property you would prefer, and how you plan to find the right location.
Whether you are looking for land to build your dream home or land for investment purposes, there are a number of other great advantages in doing so.
Affordability
Purchasing a piece of land offers you an easier and more affordable way to invest in your future. Vacant land tends to be more affordable compared to land that has already been built on. Consider buying land today and build on it later. Land appreciates in value and can build equity within a short space of time. When purchased, the land is yours and you can do whatever you desire, as long as it is within DCA guidelines and approved building codes. You can leave it as it is, or build a home on the land tailored to you and your family.
Low Maintenance
Another advantage for buying land is the very low maintenance that is required, compared to keeping a property in good condition. Vacant land also requires less of your time and less stress, making a land purchase a passive long-term investment purchase.
Long-term Appreciation
One thing to consider when buying land is that the land will usually remain in the same condition in which you bought it. Land ownership gives the owner peace of mind. As a long-term, tangible asset, land does not wear out or depreciate. Weather and erosion may have an impact, but generally over the long term, land tends to appreciate.
If you are able to get a deal on land in this environment, and you’ve done your due diligence, jump on it! Land is a safe and tangible investment that trends upward over time. It is a finite resource that they are not making any more of — and if you score a deal that you decide to sell in this market, it won’t take long for that land to move!
Like any investment decision, it is best to speak to the experts before you consider buying land. Contact your banker if you are thinking about purchasing land to build or develop.