5 Reasons to Own Land
Buying land can be one of the smartest decisions you make. Historically real estate appreciation has been one of the largest contributors to individual and corporate net worth. Land unlike residential or commercial real estate doesn’t have the expense of upkeep often required on the latter. Outside of fulfilling your financial obligation to the lender (or not if paid off) and maintaining your tax compliance, very little is required to have a line in the water and chance and benefiting from property appreciation.
Here at The Landsmith, it is our goal to not only offer great properties at affordable prices with easy terms and financing but we want you to be prepared with the knowledge to fully leverage that opportunity to your greatest advantage.
Here’s 5 excellent reasons to consider buying land and growing and/or starting your real estate portfolio.
- Property Appreciation
In the United States and in general, properties have reliably appreciated year after year yielding respectable returns for their owners for decades. Land is a finite commodity and with the word out of it’s excellent returns and low risk (respectively), the demand is only increasing further leading to appreciation.
2. ROI (Return on Investment)
There’s few financial vehicles that can yield the returns of property ownership. There are markets where properties see appreciation of 20% or more per year with the average appreciation even being beyond the returns of many IRA’s or other financial products designed to create returns.
3. Protect your money
Even if your motive isn’t necessarily turning a massive profit but simply keeping your money safe. Property has been an excellent option for the above reasons. Why keep your money in the bank for nearly no benefit when you can put it in land which statistically can be equally as safe yet expose you to the great benefits of appreciation.
4. Cash flow
In the world of today there are many options when it comes to getting a property to cash flow. You can build a tiny home and put it on AirBnB. You can leave the land vacant and rent it to RV’ers. The land can even be leased to people for various purposes like agriculture, storage or more. Wise use of a property can not only protect your money but generate cash every month.
5. Build a home
A huge benefit to owning land is in ones ability to build a home or business without the costs associated with rent. Owning a property allows one to build the above avoiding many finance costs that can equate to thousands, tens of thousands, even hundreds of thousands of dollars contingent on the magnitude of the property. Owning land is a safety net ensuring you and your family always has a place that is yours to call home.
In addition to the above, owning land has many more great benefits. Not only is an excellent way to protect your money but even turn it into more through appreciation and/or strategies to get it to cash flow. When you own land you’re putting your money to work for you where statistically and historically that has been a very sounds financial strategy for those investing in it.
Here at The Landsmith we understand starting with nothing (even bumping our head along the way) but through commitment and perseverance understand certain principals which we pass onto our customers enabling them to, to build a real estate portfolio.
It was always our dream as young builders to become an investor and give people the easy access to property ownership that we didn’t have. It’s like the great Zig Ziglar quote…
“You can have anything you want if you’re willing to help enough people get what they want.”
This quote is a fundamental ingredient in our strategy and certainly a contributing to factor to the success of our clients and in turn, us.
Should you have questions about a particular property or investing in land, we’re standing by happy to help.