Vacant land is one of the most ignored and misunderstood real estate investments in the world. You may think that they do not produce income, that they are boring therefore difficult to sell, that they do not have any functionality, etc … But the reality is that investing in vacant lots produce a good cash flow and provides a lot of investment versatility.
They do not require an additional initial investment
You will not have to think about renovations, inspections, evaluations, and so on. The price of the property is what you will be paying without thinking about paying contractors to get your property ready, as you can do this from scratch if you wish to build.
Doesn’t Cause Worries
Empty lots don’t give you issues like broken lights, clogged sinks, leaky ceilings, burst pipes, and more. All the responsibilities that come with the reality of being a renter. The only maintenance that an empty lot would need would be taking care of the lawn and the vegetation it has.
Owners Motivated to Sell
Statistically, vacant land owners are highly motivated to sell. This is because they are absent owners, and because of this they mostly do not have an emotional attachment to the properties. Also since they do not live in them, they do not use them and they do not know how to develop them. This is good for you because there is a good chance that because they want to sell the property in a hurry, you will buy it at a lower price!
Lot Investors Have Little Competition
Not many people buy vacant lots because they don’t see the potential they have. Therefore you will not have much competition to place bids and win them to buy a property since the market is not saturated. If you manage your time and money well, these lots at a low price and without competition can be used to sell them at a higher price to an investor who needs the lot for a project they want to carry out.
Versatility
The reality is that investing in vacant lots provides the unique opportunity to let your imagination run wild. If you want to use it for yourself and build for residential or commercial purposes you can. Or also as we mentioned before, you can re-sell it at a higher price to someone who wants to use it too. The value is that an empty lot is a blank piece of paper, and currently most properties are not because the world is saturated with construction. So a vacant lot in the future can be of great value for sale.
The value of a start from scratch can be higher than that of a property already built. If you are one of those investors who like to have short, medium and long term investments; then investing in empty lots is the perfect long-term investment for you.
