INCREASE WEALTH BY INVESTING IN RAW LAND

Since 2020, there’s been increase in demand for land. And with a limited supply of surface ground, this makes raw land and acreage a hot commodity. Whether it be investing in farmland for livestock or crops or dividing larger tracts into smaller parcels, the demand for land means that it can be a good investment or a way to increase wealth. Here are a few reasons why:

1. Land shares retain value.

The old saying “they are not making more of it” is true. Land cannot be moved, stolen (except through a fraudulent sale), or destroyed. Unlike shares in stocks, your shares in raw land don’t vanish into thin air.

2. Longevity asset.

As a limited supply, demand for raw land continues to be a good source for long term investment. This gives you peace of mind, knowing that it will always be there where you can physically see your investment. And when demand for land increases, so does the value. Smart investments can be positioned for future growth in certain areas and just sit and wait on future growth, demand, and development.

3. Hands-off Investment.

Investors in a more fluid stock share investing constantly have to be aware of the market and ready to sell at a moment’s notice due to its volatile nature. With land investing, you can sit on your investment. And unlike rental property, you have no tenants, no repairs, and no maintenance. In fact, raw land requires less expenses in upkeep than a house or commercial building.

4. Less complicated.

Buying raw land includes less obstacles than buying a house. And with a good agent doing all due diligence and research, an investor will find a tract that meets their needs. Most transactions can be done remotely so that the investor does not have to be there in person.

5. Passive income potential.

Passive income can be achieved depending on the type of property investment. There are many possibilities for leases such as farming, ranching, grazing, hunting, timber, or recreation. By leasing out your investment, this helps share the burden as the leasing rancher will do their own work, upkeep, and repairs to fencing in order to improve the land for their cattle. Or for a heavily wooded tract, it could be leased to hunters so that they set up feeders to draw in more wildlife. This allows unlimited opportunities and income without ever leaving your easy chair.

6. Proactive ways to increase value.

If you choose to buy land in order to flip it, you may start by buying an overgrown piece of acreage or a tract with lots of debris. You can then increase its value by cleaning it up, removing or thinning trees, creating trails, repairing fence, or improving the pastures. Or you may buy a large tract and split it up into smaller parcels to sell at a higher price point. Or you may invest in land and then provide improvements to increase its future value. Some of those changes could be building a pond or barn, fertilizing pastures for cutting hay or grazing cattle, planting trees, or developing a better wildlife habitat.

If you’re buying land for future development, you’ll want to make sure it has access to water and electricity. Plus you’ll want to check for any restrictions or types of soil depending on what use will be required. Also, here’s what you need to know before buying land in Hopkins County, you can go here.

About the Contributor: Tom Hendricks at Janet Martin Realty works with clients throughout NE Texas getting the right property and plan for all his client’s needs. He tackles real estate with integrity that earns his client’s trust as he credits all his success directly to those who continue to place their repeat business with him. Tom covers a large area from Paris to Longview to Greenville to Texarkana. He uses his extensive experience and knowledge to get the results his clients deserve. Diversified in services for raw land, ranches, lake houses, and homes, Tom puts in the extra effort in making customer service the #1 priority and works everyday providing positive results. You can reach him at 903-438-6925