Investing in land may not be as sexy as investing in a fully developed vacation rental like a beachfront bungalow, but it has many overlooked advantages worth exploring.
Whether investing in raw land or in an already subdivided plot, there are multiple benefits to investing in land.
The truth is that land investments are extremely profitable, even in terms of cash flow. In fact, land is a much more adaptable investment than most people believe. And the fact that it does nothing is a huge plus, as you will quickly discover. Also, what is boring about a money-making investment?
Here are a few of those advantages:
1. Supply is fixed.
“Buy land. They ain’t making any more of the stuff.” –Will Rogers.
The supply of land is fixed. This means its value will only increase over time as the population increases. Getting into a land investment in a growing location or where development is projected to occur can substantially multiply the potential of your investment. Because of the reliability of land as an investment, it’s increasingly becoming a popular retirement vehicle. Instead of parking money in a bank, future retirees are now opting to land bank instead.
2. It’s adaptable.
Investing in land gives investors options. It’s adaptable. Raw land can be entitled and sold as subdivided lots, or it can be developed for a specific purpose, such as vacation rentals, office space, retail shopping centers, and multifamily housing.
Land also gives investors the option to do absolutely nothing at all. Investors can leave it as-is with no need to renovate or repair it, as with a physical property, knowing that it will retain or increase its value. You can own land and sit on it with the comfort of knowing that someone down the road will most certainly want to own it at some point.
3. No headaches.
Consider the differences between owning land and being a landlord. No dealing with tenants, delinquent rent payments, and plumbing issues. The land requires nothing from you. Commercial properties, on the other hand, come with a host of management, upkeep, and accounting challenges.
4. Buying and selling land is easy.
Land obviously does not require as much capital as physical property to acquire, and it requires less paperwork, due diligence, and banking red tape to acquire and sell, making transactions much quicker than those involved with buildings.
5. Less competition.
There is less competition for land than with other types of real estate. Investors are more interested in fully developed properties than in raw land.
6. You can buy it sight unseen.
Vacant land can be purchased without an inspection. What is there to inspect? Market reports are often sufficient to support the economic viability of the location of the land and its financial feasibility. Because there are no structures and inspections, you can do everything online and over the phone and literally acquire land remotely.
7. Ongoing ownership is cheap.
With land ownership, there are no ongoing expenses like insurance, utilities, property management, mortgages, or other costs associated with owning a building. The only thing you have to worry about is property taxes, and even then, the property tax on land is relatively low compared to a structure.
8. The land entitlement opportunity.
For those with the knowledge, experience, and energy to take raw land through the entitlement process, selling subdivided lots or developable land can be extremely lucrative.
It’s the ultimate value-added opportunity without the expenses of repairs and reconditioning restoration projects.
The Belize Opportunity
The opportunity to invest in subdivided plots of island property in Belize through seller financing offers investors the ultimate opportunity to get in on a real estate investment with all the advantages of owning land without the red tape of obtaining a bank loan and without the headaches of being a landlord.
It’s an opportunity to quickly acquire a diversified offshore asset without ever having to touch your feet on the ground.
Stay tuned for our next opportunity.