Vacant land is one of the most overlooked investment opportunities out there, and it can certainly pay to invest “outside the box.”
Like any other investment property, you must evaluate how vacant land for sale in Florida would potentially benefit you. It’s always wise to enlist an industry expert’s advice before taking the plunge. He or she can help you discern whether the investment you’re considering is a profitable option.
In the meanwhile, here are some things you should know about investing in the Sunshine State’s vacant land.
A Hands-Off Investment Opportunity
One of the reasons why vacant land is a frequently misunderstood real estate investment is because people are accustomed to having to “do something” to their investment property. This can range from renovating an old home to dealing with renters. Many are surprised to hear that an untouched, uninhabited property can accrue value.
A major pro of investing in vacant land is that you don’t have to do anything! If you choose the right piece of land, it can appreciate without taking any time out of your busy schedule. Considering that a wise investor stands to make 30 to 50 percent, that’s a lot of money for land you don’t need to touch.
Of course, some vacant land buyers make their purchase with the intent of cultivating farmland or building on it. These endeavors can also be very lucrative long term. Make sure to consult with a land professional on topics such as:
- Whether the property needs a septic system installed
- Whether the land realistically suits your plans
- Which zoning laws may apply
- A Hard Asset
One major reason for investing in vacant land is that it’s a hard asset. A hard asset is an investment with intrinsic value, and one of the major benefits is that it will always be tangible and worth something. A hard asset cannot plummet all the way to zero in the way some other investments can.
Other examples of hard assets include:
- Commercial real estate
Land is capable of fluctuating in value just like any other investment, but when you pick the right property, it can prove extremely profitable.
Long and Short Term Gain
As mentioned earlier, a skillfully selected property can increase in value without the need to lift a finger.
That said, there are a variety of ways vacant landowners can make an ongoing profit as well. For example, vacant land in Florida can be leased to farmers, which generates monthly income.
Many people also choose to purchase land so their investment can serve recreational purposes. These can include anything from biking to off-roading to hunting. The property owner can enjoy the best of both worlds: having fun in the moment and investing in the future.
Vacant land in Florida is an exciting and prudent investment opportunity when done right.