10 REASONS WHY YOU NEED TO OWN A PIECE OF LAND IN NIGERIA

10 REASONS WHY YOU NEED TO OWN A PIECE OF LAND IN NIGERIA

Investing in land and buying land is not a well-understood concept. Most people don’t know for sure how land buying works. And even fewer people understand how investing in land is a smart strategic move for diversifying your portfolio. You don’t want to be one of these people.

There are lots of people who have never even considered buying land. You could find yourself asking “Is buying land a good investment?”. Understandably so – people aren’t always willing to play outside the box when it comes to their money. I’m not saying that buying land is the ‘be all end all’ of investing, but you should definitely be open to including it in your portfolio.

You owe it to yourself to at least be educated about the different types of real estate investing. Most of you are familiar with the fancier and more glamorous real estate methods. House flipping and home renovation shows take over TV channels. Robert Kiyosaki made townhomes and other building investments look easy.

No one is talking about why land is a great investment. That presents you with an opportunity. These 10 reasons will convince you that land is a fantastic investment, and will make you want to put your money in the dirt – literally.

1.  Land is a Finite Resource

No one is making any more land! I know Elon is out there trying to populate Mars, but as of the 21st century, the country lines are pretty well drawn. Buildings can be replaced and demolished, whereas land is a valuable and finite resource, with only limited quantities available. 

I love the quote below. I know it’s overused in the land niche, but it’s true – forgive me if you’ve read it dozens of times already.  

2. Land Gives You Peace of Mind

Land is the well-behaved, ‘golden child’ of investing. Land can’t be stolen or destroyed. No extra effort from you is required. There’s nothing to protect, maintain, or renovate. There’s nothing to ‘do’. Land in its natural state will always be worth something!

A key component to investing in land is to buy a property that can have something ‘done’ to it one day (e.g. suitable for building or housing). This will make sure you have no maintenance to “do” now, but your land will be worth something in the future.

3. Land is a Tangible Resource

Land cannot vanish or disappear like shares or stocks. If tomorrow the world decided that money was just a useless piece of paper and has no value, land will still be something. It will be something tangible and physical that is yours, regardless of what the global economic situation is. Currency and monetary values may change, but ownership does not.

4. Land has Low Competition 

In this real estate niche, there’s low competition. Most people (especially those with a lot of investment capital) are focused on the shiny and glamorous aspects of real estate investing – condo buildings, developments, house flipping, multi-units. It’s not their fault, almost everyone is focused there.

These methodologies sell-out conferences and consume TV channels all across the country. But sometimes to win, you have to be where others aren’t.

5. Land is Inexpensive to Own

Land is inexpensive to own over time. There are no mortgage payments or utility bills. There are no extra charges for the best internet package. No roof needs to be replaced.

Property insurance is not required, even if you do decide to purchase it’s minimal. Property taxes are minimal –. Your asset sits quietly in the background, costing you almost nothing and silently increasing in value.

6. Land Gives You Freedom

Freedom! Land gives you the opportunity to be creative and mold property how you want. You can hold it for a lifetime and leave it as part of an inheritance. You can purchase land, save up some money and hold it for a decade, and then build your dream home! Or you can create your own golf course, paintball arena, dirt bike track, there are endless opportunities!

7. Land is Great to Hold Long-Term 

Land investing is not for the faint of heart or someone looking to make a quick flip and create immediate income. It’s for someone with no immediate plans to develop their property.

It’s for the patient, smart investor, someone who is willing to hold for the long-term or pass it on as a legacy. It’s for the investor who is 10 – 15 years from retirement, who want to diversify their portfolio.

Land is a smart long-term hold, allowing you to win the benefits of rising values. Especially if you buy in an area that’s due to expand and grow.

8. Land Increases in Value

Land is less costly to buy than developed real estate, simply because there’s nothing there (obvious, right?). There are no improvements or additions to it that make it more valuable.

You can purchase a valuable and quality piece of land for less than $1,000. If you do your due diligence properly and make sure that the piece of land is in a path of growth, it could be supremely attractive to future developers. You could sell that property for as much as x5 or even x10 what you bought it for! That is some easy profit!

9. Land is Easy to Purchase

When purchasing land, you don’t need to rely on an expensive bank loan or mortgage with unfair and high-interest rates. You might not need to take out any loan at all. Most of the time, if it’s a private sale, you don’t even need to get a credit check! A lot of private sellers, like myself and my company, Compass Land USA, offer affordable financing plans that make it easy to buy land on any budget.

And you can almost always pay cash for land. Land is very easy to purchase, and for the most part, you can buy when and wherever in the Nigeria you want.

10. Land is Easy to re-sell

vacant lands are easier to sell. Buyers usually love situations where they can take immediate possession of the property they have purchased. This makes vacant land an attractive purchase option. The buyer can start work immediately as soon as the transaction is concluded. If the property being offered for sale is a tenanted property most buyers are hesitant because of the challenge they could face from tenants that are unwilling to give up possession. Taking possession of a vacant land is generally easier than taking possession of a building.

POST SOURCE: Andrew Gaasenbeek “12 Awesome Reasons Why Buying Land is a Good Investment” https://www.compasslandusa.com/why-invest-in-land/