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Is land a good investment?
We can't afford a second home, but I'm wondering if buying land and hanging onto it is a good investment. Maybe we could build in the future or more likely sell it down the road. But is this a good investment or not? Thanks
Asked By Frank R | Union Pier, MI | 496 views | Investing | 1 year ago
Answer(5)
Karan Desai
Coldwell Banker
Hi, land is a good investment if it is in a good location. You want to think about what type of investment property as well. If its going to be used for a multiunit/ apartment complex, you want it to be in a busier residential location. Make sure there are businesses walking distance away. For commercial property, you want it to be on the main road. Make sure the building stands out. Also most importantly, make sure you get the guidelines for the land if you do end up purchasing. Make sure it is eligible for your intended use.
- 1 year ago
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Lisa and Greg Harris
eXp Realty, LLC
ARe you able to pay the taxes on the property while you hold onto it and wait to build? If you are buying it just to see it increase in value, that is something that a local professional REALTOR can answer for you. In many cases, I do not see huge returns on investment of land by itself to hold and sell for more at a later date unless it is near an area that is in development or has growth potential near it. So ask a local REALTOR about what you are specifically wanting to accomplish. They will be able to give you better direction on your local goals.
- 1 year ago
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Marty & Abby Champagne
RE/MAX Market Place
Yes but depends on the area as well.
- 1 year ago
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Bob Fall
Century 21 Lee-Mac Realty
Great question! Historically yes land is a good investment over the long term. Outside of booming market bubbles, land, and real estate give stability to any portfolio of investments. Chat with your CPA on tax advantages and the affordability of the land you are looking to purchase.
- 1 year ago
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Pauline Dent
Keller Williams Chantilly Ventures
Do your home work. Not all land is buildable. I believe buying land is a huge value when you go about 30 miles out from where everything is happening...find land...buy it...hold it...and wait for development to catch up to it in about 10 years or so...then sell it for a mint! BUT...if you buy bad..its just not gonna go well. Go to your local zoning commission at your government office and ask what their plan is for the future...they will tell you where commerce is heading and go there.
- 1 year ago
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