If you’re considering becoming a real estate investor, you may have already looked at a number of residential or commercial properties. However, there’s another option that is usually inexpensive: land. Investing in vacant lots, especially those in popular neighborhoods, can be a great way of getting into real estate without spending a large amount of money upfront.
But why? While it may not seem to be a very lucrative purchase, you can actually make a good amount of money from investing in land. Here are a few reasons why.
There’s No Further Investment Needed
With land, you don’t have anything you need to improve. There are no renovations to buildings or other costs. All you need to know is if the property is a suitable location for a building. You don’t have to handle any of the construction at all. Instead, you simply rent the land to a tenant who will come in and handle all of that. It’s a very hands-off type of investment that can be perfect for those who don’t want to become landlords due to the large amount of work involved.
There Are Few Competitors
When you bid for a property that’s located in a great neighborhood or business district, you may find yourself caught up in a bidding war that quickly goes beyond your budget. With land, however, that’s rarely the case. Commercial land for sale in Wilmington, NC, is often easy to come by. Many people assume that vacant land isn’t a big profit generator, so they don’t buy it. You may be able to put in offers under asking and walk away with the land simply because no one else wants it.
There Are Few Long-Term Costs, Too
In addition to the low upfront costs, land doesn’t have many long-term costs, either. You don’t have an expensive mortgage or any utility bills to pay as you would with an investment property in Southeastern NC. There’s no building to maintain. Property insurance and taxes are generally very low on vacant land. You may not even have to mow the grass or keep the landscaping under control.
There’s No Depreciation
Land doesn’t depreciate, nor does it break down or leave you open to thieves. Even if someone were to vandalize the area or cause a fire, it’s not going to cause the value to drop. It’s a safe investment that can give you peace of mind.
These are just a few of the reasons why investing in land is a great option that has few costs associated with it. Land is a valuable resource because it’s limited. If you can pick up land for a relatively small investment, you may find that in a few years, it has become a very valuable investment.