When it comes to real estate investing, there has been a long-standing debate whether it is beneficial to purchase a lot for sale. Some say it is great because of the flexibility it offers as a long term investment, and some differ, as for them, it needs development and future construction to generate income, unlike its other counterparts, a house and lot or a condo unit.
After you do your research, you will see that the latter statement is a misconception as bare lots are very versatile and hands-off investments that are capable of generating cash flow. While there is no one size fits all when it comes to investments, here are seven reasons for you to consider when thinking about when you should purchase a lot for sale.
When You Don’t Want to Do Much With Your Property at the Moment
If you aren’t an expert or don’t know much about how to rehabilitate a property through construction or renovations, investing in a lot for sale may be for you. All you have to do is strategically choose a profitable location for a lot, preferably one in a residential community close to amenities that cater to people’s creature comforts and needs, and you are good to go.
Whether you plan to use this land for your future home, lease it to someone, or want to gain profit through the growth of the land’s market value, buying a lot for sale with a strategic location is a good idea for you.
When You Want A Hands-Off Investment
Want a long term investment in real estate, but too busy to deal with the stress of dealing with tenants, chasing up payment, dealing with broken drainages, bugs, mold, roofs, and other issues that come with owning buildings for lease?
Maybe it means a lot for sale is what you are looking for. Once you purchase land, there are not many modifications or next steps needed to be done. Your property just sits there, no noise complaints or payment extension requests to wake up to. Check on its value every year to see how much your investment has earned through land appreciation.
When You Want to Get a Good Deal
Many vacant land owners by default are usually absentee owners. Most people who don’t live in properties that they are trying to sell have less of an emotional attachment to it, since it is not their primary residence.
In cases like these, you will find sellers who can easily sell their land at bargain price, simply because they have no use for it at the moment, or because due to the lack of knowledge in optimizing their land, they do not see the land producing income for them. By keeping an eye out for these incredible deals, or finding people you know who have land but not much knowledge about principles of land appreciation, you will be able to get yourself a sweet deal on a lot for sale.
If You Want an Investment With Little Competition to Deal With
Want to invest in real estate but don’t want to deal with factors such as competition or bidding wars every time you try to search the market for a good deal on a property? Most real estate investors have their focus set out on properties such as houses, apartments, commercial buildings, and condo units, since that is what everyone else does.
By investing in a lot for sale, you have very little to no competition, as most rookie investors don’t understand the benefits of investing in raw land, and most people who invest in real estate to expand their list of assets don’t go for land as they do not plan to follow through by building a structure on it. This gives you an advantage as you can scout for lots for sale with ease.
If You Want an Investment You can Flip
One great way to make money out of buying real estate is to flip it. Buy it then sell it after a short while at a marked up price. A great way to do this is by taking advantage of real estate developers and their friendly payment terms. Since lots are more affordable compared to other forms of properties, they are easier to buy and sell.
Look for a reputable real estate developer that is selling a lot for sale and get it through their friendly financing terms. Preferably look for those who are also offering pre-selling houses as well, as the value on these properties gradually increases as the turn over gets near. Once turned over, sell it for cash to any interested buyers, and find yourself with cash on hand that you may use for other investments.
When You Are Looking for an Investment that is Inexpensive to Own
Once you purchase a lot for sale as an investment, there is not much time and money needed to be spent to maintain its upkeep. No mortgage payments to make, no monthly dues, no utility bills to pay, and the property taxes are low.
Most people who invest smartly buy land for the purpose of parking their money rather than saving it in banks. The appreciation rates on land are a lot higher compared to bank interest rates, making it a better investment vehicle for money you want to store for the long run.
If You Want Peace of Mind
Picture this. A lot for sale is a long-term and tangible asset that does not wear out and depreciate unlike its other tangible counterparts such as cars, gadgets, etc. You can leave it without anything getting broken, stolen, dismantled, or destroyed. (just have someone trim the grass and remove the weed every few months), You can generate income through gains, that would not even require you to do much, interact with people, or collect monthly payments.
If any of the 7 reasons above fit you, it’s time to buy a lot for sale. If you want to buy a lot for sale that merits a “good” investment, look for one that is located in a developing city such as Laguna and made by a credible developer to make sure that you are in good hands.
Greenfield City in developments that offer prestigious bare lots located in the heart of the country’s Lion City of the South, Sta Rosa, Laguna. The properties, namely Trava, Pramana Residential Park, and Solen Residences, are surrounded by a balance between innovation and the embrace of nature’s greenery. In the midst of relaxation and serenity within the surroundings are establishments that will definitely keep its residents near to their needs and creature comforts, as it is located near close to Paseo, Laguna Central, and Arcadia, three lifestyle establishments where restaurants, bars, cafes, and outlet stores, and shopping strips with sprawling open spaces and lush greenery are located.
Greenfield City’s 400 hectares of a self-sustaining network of residential, commercial, industrial, and recreational communities puts a premium on open spaces and nature and offers a refuge for those who are looking for a refreshing shift in scenery and lifestyle outside of Metro Manila.
To learn more about Greenfield City and the lots for sale in it, click on the link below:
Greenfield City
Reference:
https://retipster.com/landinvesting/