Posted on: 31 December 2015
When people think about property investments, they usually imagine owning their own family home, a holiday home, and perhaps a buy-to-let property. But one kind of property investment that is continuously overlooked is land. That's right - a plot of land is considered a property investment as well, and it can be an extremely lucrative one at that. Here are a few reasons why you should seriously consider investing in land today:
Less investment capital is needed. With land, you aren't investing in the time and resources that somebody has spent constructing a building. For this reason, the start-up capital that you require to invest in land is much lower than other property investments. The downside is that it could be a little more difficult to find mortgage lenders that lend capital for land ownership, but they do exist, so hunt around. Land can, however, be so inexpensive that you might not even require funding from a third party.
A great location is a big win. When purchasing land, location is everything, so this is something that you'll have to think very carefully and strategically about. Imagine if you were a property developer looking for land – what would you look for? A good idea is to invest in a town or city that is gentrifying and expanding outwards. If you can find a good value deal on land on the fringes of the area, somebody is likely to pay a premium to build on it in the future.
No maintenance. In order for a conventional property investment to maintain its value, you have to keep investing in property over time with things like replacing driveways, refitting windows, and maintaining gardens. But with land, none of this is necessary. It is not going to depreciate over time unless you are very unlucky, and nothing can get broken. This is a great investment for somebody who wants zero fuss.
Very little competition. Because people think of family homes and holiday homes when they think about building their property portfolios, you'll probably find that there is significantly less competition when you start exploring the land market – for no other reason that people aren't tuned into the idea of investing in property they can't physically live in. This means that you don't have to deal with bidding wars that push prices up, and you could end up buying an amazing piece of land for a very reasonable price.Share