One of the most famous quotes that came from the great actor Will Rogers was “Buy land. They ain’t making any more of the stuff.” It is great advice that we all should take when it comes to investing. Typically when we think of buying property, we think residential and commercial, but what about recreational land? Seth Williams, founder of REtipster.com, notes, “…vacant land is one of the most overlooked and misunderstood real estate investments in the world.” Here are a few reasons to look into investing in recreational land.
You Are Not Limited To Local Land
Using online resources can allow you to research prospective property to make sure it is a good deal. You are not limited to purchasing property in your city or even state and can find a great deal on land that is miles away. It is fairly common to buy, sell and profit off of recreational land that you have never even set foot on.
There Is Little Competition
Most investors seek land that has some sort of structure (i.e., apartment building, house, shop) already built on it. Those investors then compete with everyone else who is bidding on the same piece of property. Few people understand the benefits of investing in recreational land, therefore less competition when it comes time to haggle and buy. You can rest easy knowing that you will most likely not be involved in a bidding war.
Low Maintenance And Upkeep
Recreational land is not demanding. You can just let it be. It’s a great investment that just sits there and accrues value with time. Also, depending on the size and location of your property, your land value will most likely appreciate in value. Curt Eilers, a broker/investor based out of Naperville, IL, points out that investing in recreational land provides opportunities to gain appreciation equal to or better than returns of the stock market.
There Are Little Expenses
There are no buildings on recreational land which means no mortgage payments. Insurance and property taxes are low too. There is also nothing you need to repair or renovate. You are not buying to build so you don’t need to worry about permits, construction, and headaches.
You Can Generate Income
Depending on the location and type of land you invest in, you may be able to rent out all or parts of your land to energy or telephone companies. You may also be able to lease the land to farmers to graze their herds or hunters during hunting season.
So if you are looking for a solid place to invest your money in that will accrue value over time, require very little maintenance and generate potential revenue, recreational land may be something for you to look into.