In real estate bare land is a plot of land that has not been developed or prepared for construction. Despite an inherent lack of development, investing in vacant land is becoming increasingly popular. Bare land is categorically and objectively an appreciating asset for two simple reasons: limited supply and increasing demand. Keep in mind that there is a finite amount of vacant and undeveloped land. As such, land is a very attractive commodity in a world where the population is increasing.
The benefits of investing in bare land
The value of land can grow
To start with, the value of vacant land has the potential to grow quickly. One of the greatest benefits of investing in vacant land is that it is bound to increase in value due to increasing demand. Besides this, undeveloped vacant land becomes an undeniable investment opportunity when you spend time and money adding buildings and infrastructure. For example, you can increase the value of your land by installing the features people look for when buying a home. With this in mind, add electrical, water and sewer lines to increase the value of your vacant land.
Do you know that a vacant piece of land can generate revenue before you sell? If your vacant land already has some desirable features, you can use it to generate revenue. This enables you to make some while you wait for your property’s value to increase. For example, you can make money by leasing your vacant land to farmers if it has fertile soil and a water source. Investment experts advise that you should pay close attention to the land’s features before you buy it.
Create the best use
One of the biggest benefits of buying vacant land is that you have the opportunity to create the highest and best use for the land. As such, you have the freedom to use the land the way you want and get the best use out of it. However, keep in mind that many zoning restrictions are already set. So, you have to adhere to them or pursue the right channels to get the zoning restrictions changed.
In most cases, vacant land buyers pay with cash, giving them full access and direct ownership of the land. Direct and outright ownership of a tangible asset such as a property will bring you peace of mind. You also won’t have to worry about expenses like mortgage interest and loan origination fees.
Generally, remotely managing vacant land is easier than managing a rental property. When you are managing vacant land, you don’t have to worry out many maintenance issues associated with managing a rental property.
Lastly, vacant land is usually cheaper to own as a long-term investment. This is especially true since property taxes and fees are often lower than for developed land.