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While most of the real estate world is looking for the newest, hottest property deal, many savvy investors have their sights set on the untapped potential of investing in land. Buying raw land, and especially buying a farm, can be an incredibly viable investment opportunity that comes without the various hassles attached to buying other types of real estate.
If you’re thinking about transitioning from the high-risk, headache-heavy world of property investment and looking to take it easy and get high returns with land investment, check out these five tips for land buyers.
1. Land is Easy to Buy and Inexpensive to Own
Unlike buying a house or a commercial building, buying a farm is so simple that many landowners purchase plots without ever even visiting the land. You can easily move through the entire process online, from scouting out locations, to negotiating deals and signing closing documents.
On top of being easy to purchase, farmland is inexpensive to own over time. When you’re buying raw land, you don’t need to deal with the hassle of paying utilities, setting up water or internet access, and you don’t have to worry about replacing or repairing parts of a building. For patient investors looking to diversify their portfolio, this is the perfect opportunity to build passive wealth.
2. Farmland is a Good Investment with High Returns
Many investors are attracted to land because it is a hands-off investment, meaning you’re not stuck spending precious time and money dealing with broken pipes, leaky roofs, or mold problems. The benefit to raw land is that it will also be in demand as towns expand and this type of investment offers such a low level of risk, there’s really not much that could go wrong. With farmland, you can purchase the plot and then sit back and let your property accrue in value until you are ready to develop or sell for a nice profit.
3. Land Gives Owners More Peace of Mind
Like we’ve said, when it comes to buying a farm, you don’t have to deal with nearly as many of the headaches that are associated with the typical real estate ownership process. Your land can’t be stolen, destroyed, or worn out over time and there’s nothing you need to ‘do’ to it to make it more viable. All you need to think about is the potential for future projects and what a developer might see in the land. Investing in land is the smartest move if you want to build up your portfolio without having to make constant house calls or worry about the status of your property.
4. Land is a Limited Resource
Although it might not feel like it, there’s a finite amount of usable land available for purchase in the world. As expansion continues, the amount of raw land in the hands of investors will surely shrink and the prices will undoubtedly go up. The best time to buy land is when it is still viewed as a luxury and less of a necessity for real estate investors. Additionally, the permanence and tangibility of land give you an edge over other investors whose commercial and residential properties might get damaged, destroyed, or become obsolete.
5. You Can Do a Lot with Farmland
While some might look out on a piece of farm property and see just an empty field, the smart investor will see a wealth of opportunities. If you’re expecting city expansion, that land could be a golden area for a future developer with big plans.
“Another option is to cut a deal with a farmer to let them work the land for a fee, increasing your land value and income, all without ever having to make a single change to the land yourself. These are just a couple ideas of the endless opportunities farmland offers.” – Corey Tyner, Delaware Land Buyer Consultant
If you’re looking for an investment deal that will yield high returns, offer endless possibilities for development, and comes without any maintenance attached, then buying a farm is the perfect investment for you. As a tangible, finite resource that’s easy to buy and own, you can’t go wrong with farmland.
Corey Tyner is a land buyer from Phoenix Arizona. He is the owner of Buy Yo Dirt, which provides an easy solution for landowners who want to buy or sell their land property without too much hassle.
Visit his website here – https://www.buyyodirt.com/