Should you invest in land?
While there may be a lot of risks that come along with land investment, there are many benefits and high potential when investing in land.
When trying to decide whether to invest in housing or land, think of the stresses you avoid from land that you’ll have with homes:
- Tenants
- Plumbing
- Mold
- Leaking roofs
- Broken furnaces
With land, NOTHING HAPPENS. It just sits there. You buy it and forget about it.
Also, there’s never going to be more land “built.” There will always be new houses which will make older houses slowly lose their value. What if the house has problems? There goes an even bigger drop in value.
Tricks to Land Investments
When you start the search to purchase land, imagine what the future holds for the surrounding areas. Is this land in the middle of development? Keeping up with areas where prices may rapidly increase requires keeping your nose in all of the political and business developments of the area.
You can typically find discounted land through bankruptcy, property tax delinquency notices, and estate sales. This is the best way to get land in hand to insure a return on your purchase. With values almost on a constant rise, you are sure to come out on top with a purchase like this.
Tax Benefits of Land
Property taxes are based on the value of the property. However, the government helps farmers by providing Ag exemptions.
Say you purchase a piece of property, and you know someone who would like to lease it from you to grow hay or raise cattle. This could benefit you in two ways. Now, not only does your land now qualify for an Ag exemption, you now are earning an income from the lease which will likely cover the remaining property tax with some left over.
Give our team a call, and let’s put money in your pocket!
