Sunday, April 18, 2010

Real Estate Investment - Land

 When most people think about real estate investing they think of residential real estate, vacation property, or, if they want to make a business out of it rentals in single family residences or multiple unit complexes. These can all be very good investments if you research and plan carefully. All of them to some degree or another require money, time, and work.

On of the least discussed real estate investments is land. Just land. Generally land would be a long-term investment and therefore a possible option for retirement savings and investment. The value of land generally would not go up and down as radically with the market conditions, as would residential property. In addition, taxes would be much lower.

  • Land is food. On it can be grown crops and livestock.
  • Land is a producer of assets. Acreage planted in timber can eventually be harvested.
  • Land is an appreciating asset. (If it's not in a flood zone.)
  • Land is recreation. If you have a camper or 5th wheel it's a getaway from the city.
  • Land is self-sustaining. It does not need constant attention or activity. It just stays there.
  • Land can be income producing. It can be rented out. A pasture can be rented to help cover the annual taxes.
  • Land is a disaster recovery plan. If something were to happen a five-acre parcel outside the city could be a needed place to reside for a time.
  • Land has a potential for future development. Depending on the growth of an area there may be the opportunity to build homes on the parcel either directly or through sub-dividing.
  • Land is an inheritance. If/when something was to happen to you the land can be a source of income or benefit for heirs.  
Some of the biggest corporations have recognized the value of investing in land. Weyerhaeuser is the one that first springs to mind. An investment in land can be anything from the city lot to 40 or more acres in a rural undeveloped area.
As with all ideas a great deal of research, study, and planning are needed to make a great investment. A good price in one area may be totally outrageous in another. Many people do not realize that the term "recreational property" may mean that the land is totally underwater during the winter months.
So, that is my retirement idea for the day. If it sounds intriguing then head to the local library or Amazon and find out more.  Do the research before heading to a real estate office.  They want to sell you something and will make a profit from the sale.  Doing your own research first can prepare you to know your goals, ask the right questions, and then deal with the professional who can help you find just the right piece of property to meet your needs.


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Carol Schultz-Weil said...

Thank you for the feedback. I checked out your site and it has some interesting investment ideas.

Olivia said...

Thanks for the great idea. My mom (now 83) remembers a classmate of hers whose family came from the Baltic area. In high school this fellow was already starting to purchase land. I'm going to pass your article onto my DH for some serious discussion. Thanks.

ali portman said...

We should properly handle the situation which has to do with real estate. Keep on monitoring, never allow things to get worst. If you think you can resolve it, then make your action take place for the betterment of your business.

Real Estate Investments