Looking to Invest in Real Estate? Think land!

Many investors, especially first time investors, choose to invest in real estate over stocks, bonds, mutual funds or other types of investments.  Real estate is so popular for investment purposes due to tax breaks, its being a tangible asset, it experiences less depreciation, and the real estate market is less volatile than the stock market, among many reasons.

Within real estate there can be many investment choices.  You can purchase a home to rehab and sell, a home to produce rental income, commercial property or land.  Land is the wisest of investment choices within the real estate world for a variety of reasons.  In many instances vacant land for sale is less expensive to purchase than land with an existing home.  The land can be used for many future uses including building, development, resale, or personal recreation.  Also, the depreciation on land value is much smaller than the deprecation an investor would experience purchasing a home.

Within the Cape Coral and Southwest Florida market we are seeing a much higher ROI on land over land with existing homes.  Parcels within Cape Coral with Gulf of Mexico access purchased in 2010 for $20,000 are now being valued by the Lee County Property Appraiser and sold for nearly $50,000.  Quite a return in three short years!


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