Most Australians nowadays are into buying residential properties for investment purposes. Given the high property prices and the high demand for affordable housing options, they certainly stand to gain a lot by investing in property.
Little do people realise, however, that there are also merits in buying land for investment. Here are reasons it’s sometimes more sensible to invest in land:
Easier to valuate and improve value
Companies like Hely & Associates Pty Ltd note that there are many things to consider when investing in property. These include location, building structure and condition accessibility and restrictions set by councils. Some people even spend money on home improvements just to get a better value.
For land valuations, however, property specialists only determine the value by researching the market, inspecting sold adjacent properties and considering the land’s application and zoning regulations. Furthermore, lands will fetch higher prices if these are strategically located or useful for farming and other industries.
Almost nobody makes land
People can build property on the land, but they can’t do the opposite. Some people try to make man-made islands or reclaim other areas for settlement, but it will take a long time before these become habitable.
Since almost nobody makes lands, these will become fewer and will eventually be in demand for off the plan buyers. You’ll be in a better bargaining position later on if you own land. You can sell your land at high prices and choose the highest bidder for your land.
More affordable than property
It’s more sensible to invest in land because you don’t need to fix it much. Your land will become attractive to buyers since it will be more affordable than fully-furnished properties.
You’re still better off if you lease your land for profit as well. Since you didn’t spend much on the land, you will most likely lease it at lower prices. This will attract investors who prefer to build residential or commercial properties at affordable rates.
Buying land is a good choice when you’re still unsure of what to build in the future. You can buy land early if you plan to build a house to lease or live in later on. You may also set up a business if that’s your future inclination. If the land’s productive, you can turn it into a farm.
There are many things you can do and reap with a vacant land. All it takes is choosing the right land to invest in.