It’s a simple fact that there just won’t be more land than there already is. Hence, the supply is limited, and because the population is increasing, land will always be in demand, making it an excellent investment. Be sure you’ve done your homework, make certain the land is accessible by road, and there will be access to utilities. You will also want to be sure that the owner can use it for the purpose intended, considering zoning laws and possible environmental protections that could be of issue.
Land offers various investment opportunities from single-family to multi-family, commercial and agricultural, and even land for infrastructure. Depending on the type of land you’re interested in and the location, land is generally much more affordable than a developed property. Just remember, no matter what kind of real estate you’re buying, location is the first key to success, followed closely by the price, as the two most important factors for real estate investors.
Read on to learn three reasons why land should be your first Providence real estate investment.
Because you are just beginning your investment journey, you have time for the land, a reliable investment that is always in demand, to increase its value over the years. This steady rise in value is one of the reasons why land should be your first Providence real estate investment. If you purchase in a good location for the right price, you could turn a tidy profit within as little as a decade. Unfortunately, buildings depreciate over time, meaning they decrease in value as time passes unless well maintained. So, when property values have increased, while it may seem this represents the actual value of the buildings, what these numbers are telling you is that the land is worth more because of the location.
While the housing market condition is no secret, you don’t typically hear reports about a boom in the land market. This lack of competition is another of the reasons why land should be your first Providence real estate investment. Because the competition is low, there’s no need to worry about bidding wars pushing the sales price above market value. So, depending on your plans and budget, you can begin building your real estate portfolio and pathway to passive income in your retirement years with an extremely modest investment.
Undeveloped land is relatively simple to own, which is a great reason why land should be your first Providence real estate investment. You don’t have to wear all of the hats of a landlord, and there are generally little to no maintenance costs. Your investment in the land is secured by the state of the land, in its natural form; no one can steal it by picking up your land and walking away. You won’t have mortgage payments, and typically you’ll pay very little in insurance and taxes. Often, the transaction can be virtual, with the advances in technology making it even easier.
Ocean State Homebuyers can help you find the perfect piece of land and help you begin building a real estate portfolio and growing your investment business. Whether you’re looking for one property or you want to jumpstart your career as a real estate mogul and buy large parcels, ask one of our professional investors at Ocean State Homebuyers about our steady inventory of the best land available in Providence. At Ocean State Homebuyers, we know how important communication is. The pros at Ocean State Homebuyers are happy to help you answer any questions you may have about the process or concerns about financing or other hurdles you face, with no obligation. Contact Ocean State Homebuyers at (401) 290 8784 today!