In the world of real estate, land investment often doesn't get as much attention as it should. Real estate investors often focus too much on investing in homes and apartment complexes while overlooking opportunities when it comes to virgin land.
However, there are more ways than you might realize to make money off of a plot of land. The following are six things you can do to make money off a plot of land.
You can resell it for a profit.
One of the easiest and quickest ways to make money off of a plot of land is to resell it immediately for a profit. If you can buy land at a significant discount, you could resell it for a profit.
Reselling land doesn't involve as many complications as reselling a plot with a house or other type of building on it. You don't have to worry as much about building inspections cutting into your profit or creating more work for you.
You can subdivide it and sell multiple plots.
A large plot of land can often be subdivided for a profit. The value of multiple plots together is typically more than the value of the entire plot.
However, this method of making money works best if the land is purchased in a growing residential area. You'll typically need to find buyers who are looking to build a home, so land should be near a growing community.
You can sell it later when its value has increased.
If you find a good deal on a plot of land in an area with a lot of promise for the future, you can sit on it until values go up in the area. Then, you may be able to sell it for a big profit if you've made a good bet on it.
Careful research regarding the local real estate market can help you determine if a given region shows promise regarding real estate prices for the future.
You can rent it out to a commercial operation.
If a plot of land is rich in certain resources like timber or fertile soil for farming, you might be able to rent it out. This way you can make money passively while another party works the land.
You can make money off of it yourself.
You might choose to work land you own for yourself to make money off of it. This could be especially lucrative if you have some experience in an area such as agriculture, timber harvesting, or solar energy generation.
You can sit on the investment and build on it later.
While this method might not make you money, it could save you money. If you are looking to build your own property in the future, it could be best to buy the land itself now rather than later.
By the time you're ready to build your home, the land costs in your area of choice may have gone up significantly. Therefore, it's better to buy your plot as soon as possible if you already know the area you want to build your home in.
Contact an agent to begin looking at lots for sale.