Vacant land is one of the most overlooked and misunderstood real estate investments out there. Many people shy away from vacant land because they don’t understand the benefits of the investment.
Pros to Investing in Vacant Land
- No Construction or Renovations
- No Tenants
- Motivated Sellers
- Easy to Invest Remotely
- Fewer Expenses
1. No Construction or Renovations
When it comes to vacant land, there’s no need to worry about construction or renovations. You simply need to know if the property is suitable for building. As long as another party can build on the land, this now opens up opportunities for someone else to build on the land if/when they want to.
2. No Tenants
Raw land behaves itself. There’s no dealing with tenants, toilets, bugs, mold, lawn care, leaking roofs, bursting pipes, broken furnaces, and all the other issues that come with owning a building.
3. People Are Motivated to Sell
Vacant landowners are often highly motivated to sell because they’re usually absentee owners. When a person doesn’t live inside or even near the vacant property that they’re trying to sell, there’s less of an emotional connection. If it isn’t their primary residence you’ll find that sellers are typically willing to sell very inexpensively.
4. Easy to Invest Remotely
It’s also easy to buy and sell vacant properties without ever seeing them in person as long as you’re learning to research the properties effectively. Everything is done virtually in this day and age. There are handfuls of free online tools to help you with your due diligence. For example, Zillow or Trulia can help you find the information you need.
5. There are Fewer Expenses
When you’re buying vacant land for an inexpensive price, there are no mortgage payments to make. There are no utility bills to pay and the cost of property insurance (if you have it at all) is minimal. If you’re an investor that is looking to park your money somewhere and forget about it, vacant land could be exactly the investment opportunity you’re looking for.
Raw land is a long term. It should give you peace of mind knowing it’s a tangible asset that doesn’t wear out. It doesn’t depreciate and nothing can be broken, stolen or destroyed. You can always unload the property by wholesaling, getting in contact with real estate agents, or developing the land. As a result, you’d add substantial value to the property.
Don’t Knock It Until You Try It
It’s an unfortunate misconception that vacant land is a bad investment. Vacant land is capable of producing some serious passive income and can be great for many investors because of its hands-off nature and versatility.