I have always been of the opinion that cash sat in my bank account is a bad idea and whenever possible I have looked to try and invest my money, both in the long term and the short term. Around 6 years ago I was leaving a holiday rental when I saw a sign with land for sale. Now I knew very little about land but when I saw how low the price was I felt that it may be a good investment for the future. Three months later I had still not decided what to do with the land and then I received an offer to sell it, with a $8,000 profit. I sold it of course and then used the cash to go and buy more land, something which I have been doing ever since. Few people see the value in buying land so I’ll break down for you exactly why this is a smart investment.
Ease of Ownership
When you buy land you do not need to do anything with it, you don’t need to pay for maintenance, you don’t need to keep it secure and you do not need to pay anything for it at all. Land will simply sit there, waiting for another buyer to come in, or for someone to do something with it.
The first thought which many have when thinking about buying land, and indeed the first thought that I had, was to build on the property. The truth is that you certainly can, if you have the capital then you can invest in properties on the land which you can then sell or rent out. Whilst this could certainly be profitable, it seemed a bit beyond my capabilities and all I could see was additional spending without much security. Given that my land was able to be built upon however, it became a real selling point and there are plenty of other people who will happily build on the land. As long as someone is able to build on the land, you should have no problems getting rid of it for a profit.
Ease of Purchase
In the main people who sell land have no emotional attachment to it and they invariably live pretty far away from the property. The result of this is that they are happy to negotiate a good price, and they are usually in a rush to sell it. This means that you can grab a great bargain and as long as you apply some patience, you can wait for the right offer to come in. What makes buying land even easier is that there are no checks to be carried out, no searches of the property, no surveyors or solicitors, or even banks required, it is a straight transaction between two people, very simple and very quick.
If you see some land for sale, picking it up could be a very smart investment opportunity for you.
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