When talking about investing in real estate, let’s face it, most people don’t even think of buying vacant land. But, land can actually prove quite lucrative if done correctly. 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. In this post, we share 3 Reasons Why Land Should Be Your First Arizona Real Estate Investment.
1) Time
Because you are just beginning your investment journey, you have time to let the land increase its value over the years. This steady rise in value is one of the reasons why land should be your first Arizona 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 unless they are well maintained, and at some point the land itself could be worth more than the structure. So if you have time on your side, buying vacant land can prove a great investment.
2) Competition
While the housing market condition is no secret, you don’t typically hear reports about a boom in the land market making it a hidden gem in the investment field. This lack of competition is another of the reasons why land should be your first Arizona 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.
3) Simple
Undeveloped land is relatively simple to own, which is a great reason why land should be your first Arizona 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.
Southwest Land Deals can help you find the perfect piece of land and help you begin building a real estate portfolio. Whether you’re looking for one property or you want to jumpstart your career as a real estate mogul and buy large parcels, check out our steady inventory of the best land available in Arizona. We’re 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 Southwest Land Deals at 480-442-7787 today!