Land investing is a huge opportunity. When you buy a plot of land, you are essentially predicting the future. Unfortunately, land investing is not a “get rich quick” plan. It’s a long term investment. An ideal way to steadily grow your income. Land investments, for sure, can produce high returns, passive income and large profit margins. All these can help you retire early, boost your retirement savings and even help you reach your wealth-building goals faster.
In this article, we explore why buying a plot is the most ideal way to grow your income. Broad reasons include the appreciating characteristic of land and the passive income that can be generated from it.
The reality is that land is an extremely valuable resource with limited quantities available. Its limited supply and high demand, categorically and objectively makes it an appreciating asset. It’s not a question of whether land will appreciate, but rather how much will it appreciate. Good returns could be made from buying a parcel of land for a low price, holding it until the value appreciates and later selling it for a higher price.
Land is a good source of passive income. Passive income is any money earned in a manner that doesn’t require too much effort e.g. selling ad space on your blog. It’s a dream come true for many whereby you sit on your couch watching TV and the next thing you know, your phone chimes with a direct deposit straight to your account.
Rental properties and leasing are the two major ways of earning passive income from land which we explore further.
Though rarely, a hundred percent passive, rental properties provide much needed cash flows. A rental property can either be residential or commercial. Residential ones include single-family homes, duplexes to flats. Commercial properties on the other hand, include: office space to industrial (warehouse, factory).
Before becoming a landlord, one should consider a number of things before making the investment. For your first rental, don’t think fancy; think modest, stable and middle of the road. Look for an area with good reputation; a solid neighborhood, and good recreation facilities. This will not only guarantee the appreciation of the property but also attract the right kind of tenants.
Looking to guarding your land against trespassing, theft and illegal dumping plus the bonus of peace of mind and additional income; leasing is the way to go. There are many businesses looking to lease land on monthly and yearly basis. A land lease allows individuals or companies to rent a parcel of land rather than purchase it. Leasing options are varied from cell towers, billboard rentals, solar panel project, agri-tourism site etc. Leasing farm land to a farmer is another way. The farmer pays the landowner monthly rent and is responsible for the land development and maintenance of the land. A lease agreement aims to earn a monthly return on the property.
There are numerous ways for landowners to turn their land into multiple sources of cash income. The demand for private land use is nearly immeasurable and it’s what they can and should take advantage of.