Are you considering land as an investment property?

Land brings many benefits to real estate investors, particularly individuals who are seeking a long-term investment with a bit less risk than you would generally see with many other real estate investment opportunities.

The risk is significantly lesser than what you would see with a property that includes a structure because there’s no chance that you’ll suddenly lose the land to a fire or natural disaster. With just a few exceptions (such as coastal or waterfront land), the land will always be there and there’s little risk of the land suddenly losing its value as could occur with a structure in the event of damage.

You also know exactly what you’re getting with most plots of land. A structure can hide lots of flaws and issues, but for the most part, land is free of these issues. The two exceptions are pollution/illegal dumping, which can damage land value (and necessitate a costly cleanup), along with improper farming practices, which can destroy the fertility of farmland for several decades or longer.

The cost to maintain land is minimal too, as there’s no need for maintenance and monitoring as is required for properties with structures. You also don’t need a comprehensive insurance plan on land, as would typically be required for a structure.

As with any real estate investment, you must find the right property in order to turn a maximum profit. Ideally, you should select land that can be subdivided into multiple lots, as this makes the property more desirable. In cases where you buy a single lot, it’s best to purchase a corner lot over a non-corner lot, particularly for commercially-zoned land.

It’s also best to chose an investment property that’s situated just outside of an area that’s seeing lots of economic growth. The idea is that in the not-so-distant future, real estate developers will continue spreading outwards from the city center, making your property more desirable and more valuable.

The regions around Chicago have lots of great investment properties available, including land that’s ready for development or land that will be sought-after by developers in the not-so-distant future. If you’re ready to get started with investing, take a few minutes to complete our investment questionnaire. This will help us learn more about your investment goals and objectives so we can recommend an investment opportunity that’s right for you.

Questions? Call Greg Teele at 224.343.6890.

Write a comment:

*

Your email address will not be published.

©2016 Teele Enterprises Inc.

RainmakerLogosmall21-shadow