While it’s not recommended as readily as real estate investment, land investment, buying the right piece of land and making money from it is a lot more reliable than you might think.
Even with property development, it’s usually the land that’s appreciating in value, and not the property itself. So, how do you make sure that you spy the right land investment opportunity and take advantage of it?
How do you spot the right land investment opportunity?
First of all, you might wonder what a good land investment opportunity looks like in the first place. This depends, largely, on what kind of market you think that it might serve. If you’re looking to improve the land or prepare it for development, then you want to land that has good links to surrounding towns or amenities, with the location being the most important factor. However, if you’re looking to create a private campsite or a holiday home, then it’s going to be much more about the beauty of the site and the proximity to areas of interest.
Keeping an eye out for the best shot
Of course, knowing what a good opportunity when you see it is one thing, but how do you find those opportunities in the first place? As with real estate, land investment is all about being in the know. To that end, look into sites that offer land for sale and see what new offers they have. Doing your background research matters as well, such as finding out why the land is being sold as well as keeping up with news of any upcoming developments that might affect the value of that land.
Improving the land in preparation for sale
As with property, there are multiple ways to profit from buying land, as well. The main two ways are roughly equivalent to the two main ways of profiting property, too. If you have land in an attractive area for those looking to develop, then you can improve and flip the piece of land. Investing in road building services, soil management to improve building conditions, or having the land made ready for utility connections such as water and electricity can greatly improve its resale value when people are building in the area.
Make it a place to stay
As with property, you don’t have to sell land to make some money off it. Renting it out is always an option, as well. The most elaborate investment you might make in it is to build a holiday property there for people to stay in. However, you can also create your own campground by providing space for tents and campers, as well as providing amenities that are likely to appeal to people for that outdoor adventure experience. Glamping is also fast growing more popular.
If you already have land, then you should keep an eye out for the opportunities to maximise your profit from it. Otherwise, it is worth keeping an eye on land developments nearby. You might be able to profit from them more easily than you think.