Wednesday, July 09, 2014
Buying land can be beneficial for many reasons. Even in a sour economy, there are still plenty of good reasons to buy land. When discussing the purchase of land, it’s typically land without a house or development built on the property, meaning it’s an open canvas for you to do with as you wish.
Investment
Perhaps the biggest reasons for buying land is for the investment. According to FindLandAuctionsOnline.com, land is usually an appreciating asset, meaning the property value will go up as time goes on. For those willing to stick with a long term plan, you could potentially make money buying land, letting it go up in value and then reselling it for more than you paid for it. If you have the money for it, purchasing land during a recession will mean you’ll likely get it for less than it’s actually worth and then the land may go up in value as soon as the recession is over.
Building A Dreamhome
Many people buy land with the purpose of building their own home on it. This is ideal for those with the money to build the house of their dreams. Aside from the personal benefits this option offers, the land is almost certain to go up in value with a nice home on the property. If you purchase a large enough plot of land you can also ensure that new development won’t push right up to your door by building your house near the center of the property.
Other Development
Similar to building your dream home on your land, you may choose to build dwellings for others or commercial buildings on your land. While this option takes a lot of money to see through, the potential to make much more makes it worth the risk. Once the buildings are up you can either sell them for one large sum or rent them out for a recurring pay check.
Conservation
Purchasing large areas of land can be a smart way to ensure their conservation. For those concerned with the environment, this option provides more moral advantages than monetary gain, though you can still potentially make money. If your plot is large enough you may be able to use it to sell carbon offsets. A carbon offset is basically money the government or a private institution gives you for not using carbon dioxide on the property. While you won’t become the next land baron with this tactic, you’re helping to protect the planet while making money at the same time.
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