If you are considering the idea of buying land in the greater Columbus area, you are on the right path. There are numerous benefits to be had when buying land.
The right piece of land is almost certain to gain value if you wait long enough. There is also the potential for the property to appreciate in value, making it a profitable investment. Let’s take a look at some of the top reasons to invest in land and explore a few key considerations.
When you buy a piece of land, you can do what you want with it up to a certain extent. There are zoning rules and building codes that must be met, obviously, but there are still plenty of ways to be creative.
An unimproved piece of land really gives you the opportunity to create something that is your own. You can build commercial properties with multiple buildings, suites, parking lots, warehouses, etc.
Low Prices are Out There
If you can find a vacant piece of land, it will be cheaper than an improved lot. Even the presence of an old, dilapidated building will require a demolition. If you look hard enough, you will be able to find land with a low entry price.
The Potential for Appreciation
Buying land is an excellent way to make money. People will always need a place to live and work. There is always a solid chance that your property investment will increase in value over the years.
Speculative investors are especially interested in vacant land in the proper location. It really is possible to achieve a high return on investment if you pick the right property when shopping for a new commercial real estate site or any other type of property.
Pay Cash if Possible
If you buy land and do not plan on building anything right away, you will likely be forced to pay 30 to 50 percent or more in cash. It is difficult to find lenders to finance “raw land” deals.
Even if you can find a lender, pay cash if you can. You will be able to avoid interest payments and liquidate in a timely manner should you find a better opportunity.
Weigh the Advantages of Holding Versus Flipping
In some instances, it can take decades to turn a profit on a piece of land. You should come to grips with the likely fact that it will take years to make any sort of money off of a land purchase.
The investment is certainly a solid means of hedging against inflation, yet it likely won’t produce a double digit gain in the short-term. However, this is a safe investment that has the potential to “pop” under the right circumstances.
Alterra Commercial Real Estate
If you are on the prowl for commercial real estate or would like to sell your property, give us a call. Our real estate experts will help you pinpoint the perfect new site. Whether you want to buy or lease a retail space, office, warehouse or other site, Alterra can help you find it at the right price.