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REASONS WHY YOU SHOULD INVEST IN LAND

Jun 04, 2020

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Vacant land is the most overlooked and misunderstood real estate investments. If you've overlooked vacant land as a viable investment opportunity in the past, you need to take a few minutes and get educated on the benefits of acquiring an amazing investment.

For those looking to invest in land, there are a lot of great resources out there.
Vacant land is capable of producing some serious cash flow and it's one of the best investments on earth because of its hands-off nature and flexibility. Once you make a decision to save money, always invest in land. The prices will, in the end, pay you more than you imagined.

COLLATERAL
Land with properly registered title can be used as collateral in order to access loans from financial institutions. It is easier to get loan with your documents from financial institutions than any other asset. Lenders know Land investments are less risky and highly profitable compared to other business opportunities out there.

SAFEST INVESTMENT WITH PEACE OF MIND
Land purchased with common sense, paid for in full and managed with reasonable care, is about the safest investment in the world.
Land is a long-term investment that is safe and secure. It does not wear out, cannot be lost nor carried away, stolen, broken or destroyed. It gives you peace of mind. Can you think of a better combination as good as this?

A TANGIBLE ASSET
Land is a tangible asset. You can literally walk on and touch your land with your two hands.
There are no existing structures so it is not subject to depreciation. It doesn't get worn out or obsolete.

LAND APPRECIATES
Unlike other investments, land appreciates with time. Some investments diminish with time, others fluctuate and eventually crash. Land almost never depreciates in value. More often than not, they appreciate exponentially. The fact that land has no depreciation value is another reason that makes it a GREAT REAL ESTATE INVESTMENT STRATEGY.
Land can’t have a depreciation value because it can’t be destroyed, moved or affected negatively under any circumstances, natural or unnatural. So when investing in land, an investor is able to rely solely on appreciation, worst-case scenario.

LAND IS INEXPENSIVE TO OWN AS LONG TERM INVESTMENT
Land is inexpensive to own as a long term investment. Owning a vacant land has the lowest expenses in real estate investments. If you buy the right plot at the right price, you don’t have to worry about cost and bills.
Asides being inexpensive to own, whether you are a high or low-income earner, you can invest in real estate. With amounts as low as #200,000 depending on your locality, possessing a land is feasible. It is an easy investment. There is always some form of investment for your budget.
Many realtors have made real estate investment affordable by offering flexible payment schedules. You can even own a house with just a down payment of #50,000.Amazing right!

LAND AS HANDS OFF INVESTMENT
A vacant land could be the exact investment vehicle you are looking for, if you need somewhere to invest your money and forget about it. You can leave your land for years and nothing will happen. It won’t deteriorate, and won’t fall into disrepair. As a property owner, you never have to lift a finger to do anything with your property unless you want to.
Find a piece of land, make sure its properly registered, fence it and go on with your life. No cash investment to make it appreciate in value. Years later you can either sell it off 10times you invested or do whatever you like with it. It does not get better than this! It’s completely hands-off.
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VERSATILITY AND OPTIONS
Land can be used for residential real estate, commercial estate, farming purposes, or left to appreciate. Land as a real estate investment strategy is something you should consider if you have the resources and need more cash flow.
Land can be used for so many options that will suit basically anyone’s needs and ambitions.
The idea is that you can basically rent, sell or even develop the land depending on your financial expectations and ability.
It can also be used for farming and livestock: Many land owners who buy their estate in rural or suburban areas have the attractive option of renting it out for many years for farming purposes. This serves two main purposes for a land owner, generating money from rent and from appreciation.

LAND IS SCARCE
Most people don't think of vacant land this way, but the reality is – land is an extremely valuable resource with limited quantities available. Especially when you purchase land in the right place, you will find yourself with a finite asset that a lot of other people want to get their hands on.
The thing about land ownership is that you will be the owner of an investment that is considered limited or rare. We are running out of land. With overpopulation around the world, empty lands are becoming even more limited every passing year.

MONEY LOSES VALUE OVER TIME
So many people would rather save money in a high interest account without knowing that it’s not an advisable option for your money because of the depreciating value of naira and inflation.
However, if you invest right in land, your investment will take care of itself, the rent from your investment will serve as your interest, and money you invested will continue growing. It makes a lot more sense and can be a lot more profitable than any other investment vehicle out there.

It is very important to consult a professional with the experience and knowledge necessary to conduct this kind of investment.

Navitas Realties is always available to assist you in making the right investment decision. We dedicate ourselves to being experts in the field.