With such a tumultuous year behind us and the rest of an equally tumultuous year ahead, it is no wonder that so many people are looking to secure investments while they can. In times like these, when the economy is in such a constant state of flux, it can be difficult and downright scary to try to make investments.
As time marches on, many people are beginning to move their assets into more secure investments, looking to diversify their portfolios and improve their financial security. But what is the best area to invest in? One area that is often overlooked is land.
Investing in land can provide more freedom and control, diversify your investments, and provide some added security. So, is raw land the best investment in 2021?
Raw land is a plot or property that has not been cultivated. It does not contain any building, infrastructure, livestock, crops, etc. Raw land is just that—natural land free from human influence.
Raw land is increasingly being sought out as cities expand and require more space for more people. Developers often build on raw land or farmland rather than tearing down existing structures as it is cheaper and quicker.
If you are looking for the shortest answer possible: yes, raw land is a good investment. Many factors determine the value of land investment, ranging from when you buy and sell it to where the land is located to what the zoning laws of that property are. However, generally, raw land is one of the best investments you can make.
It is plain to see that it is a good idea to put stock into raw land investing, but what can you expect in return? What are the benefits of investing in vacant land over non-vacant land? Well, there are quite a few. Here are just some of the benefits you can expect from investing in raw land.
First and foremost, investing in vacant land can provide you with good returns. It is extremely unlikely that land will ever depreciate, and more often than not, land only ever increases in value. No matter when you choose to invest in raw land, it will almost always sell for a good return.
Depending on who you sell to and for what purpose (commercial, residential, government, etc.), you can make a notably large profit on raw land, especially if you have a large area to sell. Though returns are dependent on timing and location, it is very likely that no matter where you buy or when you sell, you will see at least some increased returns.
One of the best parts of investing in vacant land is that the taxation and maintenance costs are often very inexpensive. If the land is empty, the government does not place much value on it, and the only taxable portion is the land itself.
Similarly, if there are no buildings or activity on the property, there is nothing that needs to be maintained. Even if the land becomes overgrown, it will likely not decrease its value. So long as there are no fire risks and you check on the property occasionally, you do not have to pay to maintain it.
Land is a good investment because it does not devalue with inflation. Even in the event of extreme inflation or recession, land value is never as affected as other investments. Additionally, as people move in and cities build out, the demand for land goes up, regardless of other economic strains.
Another benefit of land investments is that in the event of a considerable decline in the value of your local currency, land can be bought and sold in different currencies, including crypto. Land is a finite commodity; there will always be demand for it.
A huge benefit to investing in raw land is that it presents endless opportunities. You can keep it as is and let it appreciate, or you can use it to make extra income. Whether you choose to build on the land, rent it, or even turn it into an attraction, there are ways to gain income from it.
If you rent out the land as farmland, for instance, you’ll have a great source of passive income. Another method to make money from land is to flip it to other investors and realtors for an increased price. There is a lot of money to be made from property flipping.
An often overlooked aspect of land investments is that owning raw land or any other form of property outside of your home is a wonderful way to diversify your investment portfolio. Investing in several different areas is a great way to ensure security over your finances – even if one investment fails, you have others to fall back on.
Everyone knows the old saying about not putting all your eggs in one basket; well, investing is no exception. Never put all your money into one area. If the last couple of years have taught us anything, it’s that you never know what can happen.
Raw land investing is the way to go in 2021; there is no denying that. Investing in raw land can provide you with financial security that the past year may have robbed you of. It can also act as a means to making a passive income. There are so many opportunities when it comes to land investments.
Is raw land the best investment in 2021? It’s hard to say it is the best as each person is looking for different things out of their investments, but it is certainly a good idea to invest in land at any time. Land is an ever-decreasing commodity, meaning the value is always going up. As the market demands more, your chances of profitable returns go from pretty great to excellent.