There are many ways that you can invest in real estate – from residential to commercial to multifamily… and one often overlooked way to invest is a land investment. Are you looking at buying vacant land for investment in Florida? If so, keep reading because this blog post will walk you step by step through the reasons that you might consider holding land in your portfolio.
There are many reasons why someone might be interested in buying raw land for investment in Florida…
Reason #1. Land is one of the original investments!
Long before people were flipping houses for network television, investors were staking their claim on land and building their fortunes on it. All the way back to ancient times, kingdoms were built on the value and opportunity that land presented… even undeveloped land had definite value.
Reason #2. Land is a scarce commodity
Land is scarce… no one is making any more land. The more people own, the less is available (it’s a simple issue of supply and demand). So by investing in land, you are banking on the land supply to continue dwindling, which tends to cause the value of land to trend upward.
While there are no guarantees on any investment appreciation, the historical trends indicate that a lower supply and increased demand push prices higher.
Reason #3. Multiple Exit Strategies
One of the most exciting reasons to own land is that you have many options to profit and benefit from the investment. If you invest in a house, your only options are really to rent it or sell it.
But with land, there are many more exit strategies. You can build on it, you can subdivide it, you can rent it out to farmers, you can even sit on it and wait for an urban developer to come to you.
Of course, it all depends on where the property is exactly and what the laws are, but you do have multiple exit strategies when buying investment land in Florida.
Reason #4. Enjoyment
Another reason to think about buying empty lots for investment in Florida is the enjoyment factor. Depending on where your land is, you may be able to enjoy it for yourself (for hunting, fishing, camping, or just relaxing) before you make money from it.
Some of our buyers are looking for a “bugout” spot, for example, or just a place to get away from the stress of the city and park their RV for the weekend.
Reason #5. Less work
As far as investments go, vacant land investment is not very much work at all. In many cases, it’s a “buy and hold” or “set it and forget it” investment so you can buy and then wait. And any upkeep you may have to do is often minimal to none. How much upkeep does a bare spot of land need? Virtually zero.
When it comes to real estate investing options, buying raw land for investment in Florida is a very compelling investment for many reasons!