Vacant land can be a great alternative investment to other risky investment scenarios such as stocks and bonds. For investors that purchase land as a long-term investment, buying land in a growing area is as vital as the investment land itself.
Studying the direction of growth of a city or town highlights areas that have become populated over a specific timeframe and where this activity has been focused. This information is beneficial to landowners and potential land investors for a multitude of reasons.
Successful long-term land investors are picky when it comes to where they purchase real estate for investors. They study area growth and development closely. The more developed an area becomes, the more profitable and desirable their property will be. Highly developed areas attract more interest, whether it is for developing businesses or residential neighborhoods.
Eventually, businesses and neighborhoods will expand throughout the majority of the town center and land for sale will be scarce. Due to its popular location and scarcity, land that remains vacant throughout the growth of an area will become more valuable than it was in previous years. This increases potential profit if and when a long-term investor sells creating a potential for high return on their original investment on the land.
To learn more about long term land investing, contact a member of the Gratia Group Land Investment Team at (239) 333-2221.