It is important to understand that there is more to investing in property than just buying ready-made buildings and maintaining the asset.
Purchasing vacant land is far different from buying a home, where the structure is in place, you know the location and general amenities, and are sure that there is water in the taps, and electrical currents in the lights.
Vacant land seems to be one of the most overlooked and misunderstood property investments. The myths about buying vacant land includes; not producing income, it just sits there, and nothing happens, it is flat out boring etc.
Before putting their stamp of agreement on these myths potential buyers should make sure that they know all the facts before they consider not or investing in vacant land.
Why investing in land can be a good idea
Vacant land could be as valuable as owning an existing property and they are not making any more of it. Land is an extremely valuable resource with limited quantities available. Especially when you purchase land in the path of growth, you will find yourself with a finite asset that a lot of other people want to get their hands on.
It is also one of the most affordable property investments in the real estate industry. There are almost no mortgage payments to make, utility bills, property taxes or property insurance.
When purchasing land, you do not have the burden of building repairs or maintenance. You would not have to budget for issues that generally crop up in existing homes.
Land is a long-term, tangible asset that does not wear out, does not depreciate, and nothing can get broken, stolen or destroyed. All these benefits can only bring you, as the owner, peace of mind.
Potential buyers usually tend to buy vacant land with the intention to build their dream home. Building from scratch has endless possibilities when it comes to creating the perfect home, and there is nothing quite as satisfying as moving into a brand new home that was designed exclusively for you.
Owning land is a good investment for anyone; from long-term corporate land investors to someone who just wants to build their dream home.
(Source: The South African)