4 TIPS TO INVEST IN LAND
CHOOSE THE RIGHT LAND
If you’re looking to diversify your overall investment portfolio, look no further than land. They aren’t making more of it and it’s only going to increase in value as the years go by.
Not sure where they start? Typically, the best way to get going is to research and find a local real estate agent who can help you through the experience. Remember that purchasing land is not a get rich quick scheme. Instead it’s a solid investment that rewards patience and smart decision-making.
KNOW YOUR GOALS
When it comes to land, you have options. Are you looking for residential property with land for sale? Maybe some extra space for hunting or farming? All of the above?
Rural property is a different animal than typical real estate, so choosing an informed, experienced local realtor is key. The first question they will ask is, “What kind of property are you looking for?”
So be prepared ahead of time by conducting research and setting your objectives for your new investment.
LEASE TO A FARMER
Due to its versatility and dependability, farmland has historically produced larger returns than stocks or bonds. The total value of agricultural land in the United States was $2.7 trillion in 2018, up $59 billion from 2017, according to the American Farm Bureau Federation.
Buying land and leasing it to a farmer is a fairly hands-off investment with steady returns. The downside is it may be difficult to pin down a large chunk of farmland that isn’t family owned. Work with your local real estate agent to see all the options in your area.
You may be able to find a plot of land that is multi-use, meaning you can lease out part of it to a farmer while still enjoying wooded areas or ponds.
BUY LOW, SELL HIGH
Just like a home, you can flip land once you build up enough equity into it. One strategy is to buy land at a cheap price during the slow time of the year and then relist for more at a later date. Consult with your local real estate agent to see if they specialize in land flipping. It’s generally a low-risk investment that keeps your portfolio fluid and flexible.