Are you thinking about buying vacant land? Land can be a powerful investment for some investors. If you’re thinking about it, here are 6 reasons we’re buying bare land in Tennessee…
When most people hear the term “real estate investing” they picture houses… or maybe even apartment buildings. But at Rural Acres Properties, we like to think about land as an investment. It can be very motivating for many investors. Here are…
6 reasons we’re buying bare land in Tennessee
#1. Scarcity
Guess what? Nobody is making more land! The land available now is all that’s available. And that means the supply of land is always decreasing but demand for land has never been higher. With that said, decreasing supply and increasing demand help to move land investment values generally upward.
#2. Affordable
Many times raw land can be a very affordable place to invest your money, especially when compared to properties with a house or other building. You might even be surprised at the low price of some properties! (If you want to see our inventory of affordable raw land, click here and enter your information into the form).
#3. Exit Strategies
If your real estate investment strategy is houses, you’re pretty much stuck with renting them out or flipping them as your only choices. However, land has many more exit strategies available that you might not know about. Yes, you can rent your land… in a variety of ways (i.e. for recreation, to farmers, to hunters, etc.) You can also develop it and even subdivide it. You can even just hold it and wait for it to appreciate. Or you can use the land personally for your own enjoyment. And there are many more options. (And you can get creative and mix and match these strategies, too.)
#4. Growth Opportunities
Raw vacant land is probably the simplest and most basic real estate investment for your investment portfolio. But the great thing is: you can always make just simple improvements to the land – perhaps clearing it and mowing it – which can help to increase the value of your land in no time. Of course, you need to keep in mind your plans for the property but the basic point is there are many things you can do to increase the value of your land and some just require effort with little or no money.
#5. Easy
For those that like to buy and hold properties, raw land is the easiest investment. You buy the land and then sit back and do absolutely nothing! Raw land demands little or no work or upkeep, which means you can own a boatload of land and never wear yourself out like you would if managed a whole bunch of houses.
#6. Fun
The potential financial return on investment (ROI) is not the only consideration for an investment. The “fun factor” should also be a consideration– your own personal enjoyment of your investment can also make it a great way to invest your money. By investing in land, you now have a place to get away from the noise and pollution of the city, go on picnics with your family, or maybe go even do some overnight camping.
We love raw land as a real estate investment and we’ve just shared 6 reasons we’re buying bare land in Tennessee and think you might consider it too.