Short Term vs. Long Term Land Investments

Investors looking to build a robust, dynamic portfolio of low-risk, high yield investments should consider buying land investments.  When deciding to purchase land an investor should ask themselves a few questions.  First, are you looking for a quick profit or do you want to make improvements on and use this property over several years?  Perhaps this is simply a moneymaking investment or maybe an investment for you and your family’s future?  Let’s look into the differences between investing in land for the short term versus the long term.

Purchasing investment land in the short term is less common and a little trickier than a long term investment, although it is possible. The pros to a quick flip are:

1) Cash in hand, and who doesn’t like that?

2) Using the money to make more investments (preferably in more land!).

3) Paying very little in property taxes, depending on how long the property is in your name.

Long term land investments are much more commonplace.  Some pros of holding onto your land investment include:

1) Securing the future of your family.  Land is a stable investment and can be passed down to future generations of family.

2) Using the land as a cash generator.  Some examples of ways to make money with your land are a vacation rental or agriculture (crops and/or livestock).

3) If you wait longer to sell the land, it’s likely the value will have increased even more than if you sold in the short term.  You will see the most increase in value if a big company offering many jobs has moved into the area or if the population has increased significantly over time.

4) Being able to make improvements on the land that will increase the value significantly.  The improvements can be simple, such as having the land surveyed, or more involved such as digging a well or building a house.

To purchase land for investment purposes contact a member of the Gratia Group Land Sales Team at (239) 333-2221.  Our large selection of Florida land for sale is waiting to be added to your investment portfolio!

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