If you are looking to invest your money this year, you should consider land and perhaps even property. There are many reasons why this is the case, but arguably the most important we need to consider is the value of land. It’s one of the most secure ways to protect your money and your finances. You can buy land and leave it for years, and it will very likely still have the same value that you left it with. If the land around it is now being developed, it might even have grown in value. It will very rarely drop.
However, if the value of the land you purchased does drop in value, you know that it will bounce back. Why? Quite simply because the property market always does. No matter where you buy if you wait long enough, you’ll that the value does rise again. A property investment can also be a long term and a short term solution. If you need money from your investment straight away, this is still a possibility with a property investment, and we can show you how that works. But for now, let’s explore how to dive into land investments.
Investing In Land
You have a few choices when you invest in land. You can buy land that hasn’t yet been used for building on as of yet. If you’re looking for land for sale, be sure to check the market in a variety of areas. A smart option might be to purchase a place where development has begun and then leave the land until someone is interested in buying it off you at a far higher price.
Alternatively, you can buy land with a building like a house or even a block of apartments. Obviously, this is going to be more expensive, and you will need to look into the possibility of getting a portfolio loan. A portfolio loan is a long term borrow for investment purposes like buying land or property. You will have to show the lender that you have a solid plan to ensure profitability on you have purchased the land.
Once you have purchased your land or property, you have two options. You can buy to rent, or you can buy to sell. If you buy to rent, this will give you a clear way to get money back on your investment fast. As soon as you start renting, you’ll be gaining a sizable income each month. If you buy to sell, things are a little trickier because you will usually have to wait to find the right buyer. It can take months, or as previously noted, years. Essentially, your money will be tied into a property until you can get the right deal and the market has been a tad unpredictable lately.
Finding The Right Buy
It’s absolutely imperative that you find the right place to buy when you invest in land or property. That’s why you should work with a broker. There are plenty of brokers on the market willing and able to help people with enough money to invest in property. The key here is to not go out onto the market alone. Do this, and you will not doubt be heading for disaster. It’s not particularly easy to know what the right decision is when buying land or property, particularly if you have no experience in this particular field.
The worst thing that can happen is that you accidentally buy a fixer upper that can’t be fixed up. When investing in land or property a lot of people make the mistake of buying a place that has no value at all. For instance, you could spend a 100K on a house because it’s fallen into a state of disrepair. However, that’s not such a good deal if you have to spend a quatre of that amount getting it ready for a sale. If anything, you could be facing a considerable loss and even waiting out the market, in this case, might not produce the desired results. So, it is worth having an expert on your side.
Despite the potential risk, property and land investments are still one of the best for a few important reasons.
Other Investments Are Riskier
Yes, it’s true, if you don’t know what you’re doing property investments can be risky, but it’s certainly not the worst place to put your money. There are plenty of others that are far worse like the stock market. You might think that the stock market isn’t too dangerous at all, but it depends on where you’re putting your money. The lowest risk stocks are called penny stocks, named appropriately because they don’t cost a lot and won’t usually be worth a lot. Buyers simply hope that they increase in value over time and that won’t always happen.
Other stocks are far more dangerous with a lot more to lose due to their cost. If you invest in stocks, you are essentially gambling. Only insiders know when a stock is going to rise and fall and insiders can’t invest, so there’s really no way to guarantee a win at this gain.
You might say, what about precious metals. They retain their value, don’t they? That’s true but think about storing them and the risk of theft. No one can steal your home, they can only steal from it, and if you’re keeping gold in the attic, they have a good reason to try and break in. You could store your products with a specialist but that’s going to cost money so ultimately, you’ll be in a position where you have to pay to keep your money safe.
Property And Land Is Easy
Okay, when you first buy you can run into issues, but once you have the property, it can be very simple. You can either leave it and wait for it to increase in value due to market changes. Or, you can make changes to make it more valuable and to do that you just need to think about what buyers want in their home. Most likely, it’s going to be the same as what you want in yours and as such the decisions here are simple.
We hope you see now why land is indeed the most valuable investment and ensure that this is where you focus your capital once you have enough money to start investing.