The one question that my younger real estate clients constantly ask me is: “What should I buy first, a house or a piece of land?” The truth is that both options will pay off if done the right way.
If you choose to buy a home first, you can still cash on it by turning it into an investment property. Therefore you don’t have to wait until you own huge chunks of land to start benefiting from real estate. Renting out your first home is a shrewd way of leveraging your credit as well as your lifestyle.
On the other hand, buying vacant land with the intention of selling it when the value goes up is one of the most lucrative investments in the world. This is mainly due to its hands-off nature as well as its versatility.
One of the biggest misconceptions about land is that it is boring. Or that vacant land just lies idle and produces no income. The truth of the matter is that when you buy a good piece of land at the right place, you will avoid the numerous problems that are associated with other types of real estate.
Here are some benefits of investing in land:
(1)Peace of mind
With land you don’t have the hassle of having to deal with tenants, leaking roofs, broken furnaces, bursting pipes and all the other issues associated with owning a building.
(2)As a land investor you call your own shots
With so many great deals available on land, you don’t need to have tens of thousands of dollars to get started. This means that you don’t need to deal with banks and mortgage companies and play by their rules.
(3)Land is always available
Land is not just a highly valuable resource but it is also available in unlimited quantities. If you acquire land along the path of development, it becomes a finite asset that everyone is jostling to put their hands on.
One of the main drawbacks to investing in land is the travel time required. Travelling to look for land generally requires proper planning and sometimes long trips.