Land is the most precious commodity in real estate. Without it, developments can hardly be undertaken. For most investors, vacant land isn’t seen as a hot commodity. Most individuals have eyes set on developed spaces, which leaves vacant land seemingly not as valuable. Nonetheless, it could be your real estate investments quest’s backbone. Whether you are in it to make a profit and grow your portfolio or own a piece, buying land offers many benefits. The best part is that finding prime land in Kenya isn’t an overwhelming process. With Hauzisha, for example, you can find land following your desired area, size, and budget, making the process more manageable. But why should you consider owning land? Here are among the top benefits that make the land a valuable asset.
A limited resource
Land doesn’t grow to match the rising population. It also can’t be manufactured in a factory. You’ve heard majestic milestones like how the Dutch pushed back the North Sea to reclaim a piece of land. Nonetheless, it doesn’t make land any less scarce. Buying land gives you ownership of a scarce commodity that retains its value. Even in many years, your investment will be safe and profitable as its appreciation hits new highs. Land’s value is always rising. With the rising population and demand, as more people desire to own land, its values grow. This is more so since land doesn’t increase to meet the growing demand, meaning equilibrium is virtually impossible. The contribution makes land a financially sound investment.
Sure, you may need to erect a fence around your land to keep intruders away, but that won’t give you such a headache. You can buy and “forget” the land and carry on with your activities, knowing that you have made a great investment. This is unlike buying developed property. A commercial or residential property, for intake, is appealing due to the flowing income. However, a part of the income keeps the property in good shape, management, and significant taxes. This requires hiring a pro or knowing the dynamics. Vacant land is your go-to if you have no skills or don’t want to deal with such expenses. You don’t need any skills or experience, and with the appreciating value, your investment will deliver good returns.
Among the top barriers to real estate investment are the associated costs. Accumulating significant upfront cash, shopping for a friendly mortgage, paying the taxes, and other expenses can be overwhelming. Vacant land doesn’t require as much financial commitment as is the case with developed property. Fewer investors consider empty land, meaning you can find an option in line with your budget. With less competition, you can buy land and let it sit for as long as you need, rent it out, or start developing as per your capital capability.
Peace of mind
I am a landowner; there is an undeniable allure about owning a piece of the scarce commodity. It gives you pride and a sense of security. You have the flexibility to develop the land as you wish, though subject to the zoning and local jurisdictions. You can use the land to build your dream home or vacation house, or turn it into an income-generating venture such as through farming, to mention a few options. You don’t have to do it right away, but the peace of mind it gives you knowing that you have such options within your grasp is unmatched.
Land doesn’t require mental, physical, or financial energy to appreciate its value; only time. With no depreciation and constant demand, owning land guarantees financial benefits. While usually ignored, investing in land is lucrative, much like other real estate lines.