5 Reasons Why Buying Land is a Good Investment

Whereas demand for homes fluctuates depending on the economy and local real estate market, land for sale is more stable and widely available. Since there’s a limited amount of land for sale, there’s always a demand, whether someone wants to buy and hold, lease it, build on it, or develop it. An investment in Colorado land offers near-guaranteed long-term appreciation, flexible investment strategies, and low risk. Let’s explore five reasons why buying land is a good investment. 

1. Buy and Hold For Profit With Little Work

Buying land allows you to invest in real estate and profit in the long term. If you’re looking at land for sale, Colorado usually has excellent prices, especially compared to homes in a seller’s real estate market. It costs next to nothing to maintain land over the years, so you can hold onto it until it’s the right time to develop or sell. 

2. Multiple Investment Strategies

Land for sale offers a plethora of investment strategies. As stated above, you can buy and hold the land for profit down the road. Additionally, in an agricultural state like Colorado, you may be able to make money by leasing out your land to a local farmer. When it comes time to sell your land, you can either sell the entire property or subdivide it and sell only select parts.

3. Ownership Without Risk

Purchasing land for sale is a solid long-term investment strategy because it allows you to own property without the same financial risks of owning a structure. With vacant land, you don’t have to worry about repairs, maintenance, or structural damage. Vacant land also offers low property taxes. Due to these factors, most investors can sell their land for far more money than they put into it.

4. Higher Resale Value

Generally speaking, land appreciates at a higher rate than other types of properties. For one, there’s a restricted supply, which creates market rivalry and drives up prices. Furthermore, land isn’t subject to the same elements that depreciate the value of a structure, like age, weather, use, and more. 

5. Flexible Use

As long as you own land, your investment and lifestyle goals can change while you hold onto an appreciating asset. Perhaps you initially want to employ the buy-and-hold technique, but a few years into owning, you decide you want to build a home on your land instead. If you want to make money from your land, but you aren’t ready to sell it, you can try to lease it out. Plus, while you own the land, you get to enjoy all the benefits of equity and recreation.