Don’t overlook land investment! Owning land in Richmond comes with a long list of benefits. In our latest post, we will discuss the benefits of owning land in Richmond as well as what to look for in your perfect piece of land!
For many investors, using land to diversify a portfolio is an excellent strategy. When you find the right property, you’ll either be able to develop it, rent it out, or resell it for a higher price than what you paid. The overhead costs are low and it is usually pretty easy to get started as the price of land is a fraction of a standard single-family home. Keep reading to learn more about the great benefits of adding land to your portfolio in Richmond.
Maintenance costs when owning land are low to non-existent. There is nothing to paint, fix, or repair. For some lots, you will need to maintain vegetation so it doesn’t become overgrown, however, these costs are minimal when you compare them to the costs of maintaining a home. The land cannot be damaged or vandalized and the time spent dealing with your land will be minimal. You will still have property taxes, but in comparison to owning a house, the taxes on land are very low.
Acquiring land is typically pretty easy. Many lots can be purchased for just a few thousand dollars. You can start small, flipping lots until you are able to afford land of greater value. Getting started with low-cost lots is a great way to learn the business firsthand, without having as much risk as a single-family home purchase will carry. Typically, buyers won’t have to use financing to complete the transaction, saving them even more money in loan origination fees and interest. With low acquisition costs and low maintenance costs, owning land is a simple way to add value to any real estate portfolio.
There are fewer people out there buying land, which gives you some negotiation power when working with someone who wants to sell. When making an offer on a piece of land, you are less likely going to be looked over or have someone swoop in and buy the property out from under you. That said, people buying and selling land are often investors and developers. When a piece of land becomes available at a very low price, it’s important to act before another investor beats you to the punch. Experienced investors will have the cash in hand and be able to close right away, two things someone looking to sell their land fast will be appreciative of.
Owning land gives you many ways to make money from it. You can sell for a profit, lease it out, or develop it yourself. The beauty is, you don’t have to decide right now. You can take a piece of land, tuck it away for next to nothing, and wait until the time is right to do something with the property. Depending on the property, you could lease it out for parking or recreational activities. If it’s a smaller lot, consider leasing it to a neighbor looking for more space. Development costs might drop, giving you the ability to build at a low cost. Or… the area around your land can be developed, increasing the demand for your lot. This is a great way to cash in on land without having to do much work. This is why many people opt for the buy and hold strategy when investing in land in Richmond.