There are many options to invest in real estate – residential, commercial, multifamily, notes… and one often overlooked way to invest: land investment. Are you looking at buying vacant land for investment in Tennessee? If yes, read on because this blog post will provide you several reasons for considering holding vacant land in your portfolio.
There are many reasons why someone might be interested in buying vacant land for investment in Tennessee…
Reason #1. Land is one of the original investments!
Long ago, investors staked their claim on available raw, vacant land with the notion of building their fortunes. This was way before celebrities passionately flipped houses on network television. In ancient times, kingdoms were built on the inherent value and opportunity that land presented… even raw and undeveloped land had perceived value for those wanting to grow their wealth.
Reason #2. Land is a scarce commodity
Land is actually scarce and limited… no one is making any more land. The more land people own, the less it is available (it’s simply an 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 surely no guarantees on any investment appreciation, historical trends tell us that a decreased supply and increased demand move prices higher.
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Reason #3. Multiple exit strategies
One of the best reasons to own land is the many options to profit and benefit from your investment. By investing in a house, your only real options are renting it or selling it. But with land, you will find many more exit strategies available to you. Some strategies to consider: you can build on it, you can subdivide your land, you can rent your land out to farmers, and you can even hold onto it and wait for a nearby municipality to grow out to your land. Naturally it all depends on the location of the land and what the local laws are, but you have several exit strategies when buying vacant land for investment in Tennessee.
Reason #4. Enjoyment
Another reason to understand about buying vacant land for investment in Tennessee is the enjoyment factor. Depending on where your land is located, you may enjoy using the land yourself (doing such activities as hunting, hiking, fishing, camping, sitting around a campfire, or just flat out relaxing) before you make money from it. Of course this may not work out in every situation but it is something to think about!
Reason #5. Less work
Compared to other investments, vacant land involves minimal work. No angry tenants. No fixing toilets. No hassles. In many cases, it’s a “buy and hold” or “set it and forget it” type of investment so you can buy and then wait until you decide to do something with it. Any upkeep you may have to do is often very manageable and maybe non-existent.
When it comes to real estate investing options, buying vacant land for investment in Tennessee is a very compelling investment for many reasons.