The concept of buying land purely as a form of investment is often not perceived appropriately. There is an erroneous assumption that vacant land is a “weak” or even pointless investment because it:
- Doesn’t produce income.
- Just sits there, and nothing happens.
It’s an unfortunate misconception because the truth is, vacant land is capable of producing some serious cash flow. It’s a strategic move more investors must make to diversify their portfolios because of its hands-off nature and versatility.
The benefits that come with owning the right piece of land, purchased at the right price, far outweigh the problems that come with any other type of real estate asset. If you’ve overlooked plain land as a viable investment opportunity in the past, and still wonder if buying land is a good investment in 2022? The quick answer is YES!
Mark Twain famously said, “Buy land, they’re not making it anymore,” and that really sums up the top reason why land is such a good investment. Land will always be needed, and it is not going anywhere. Buildings and businesses come and go, but land remains. Because land is a finite resource, it makes sense that it can be a lucrative investment.
Let’s take a look at some of the top reasons to invest in land:
- Land is in Short Supply
First things first, land, as a resource, is becoming scarcer over time and becoming more expensive. As the population increases, the demand for land and cost increases too. Sooner rather than later, your property will come into play in the larger scheme of things. If you have land, shine your eye well, well.
- Owning a Piece of Land Gives Peace of Mind
Land can be called the ‘golden child’ of investing. Once you complete the buying process, you are rest assured; no one can destroy it. A piece of land always increases in value no matter the place (Yes, even in your hometown). Owning land gives you financial security and peace of mind. No expert maintenance is required, and you can sell your land at a higher price in the future. So, we can say land investments are worth every penny!
- Land is a Tangible Asset
Investing in a vacant piece of land is significantly less risky than stocks. It cannot disappear or lose its value suddenly (if Elon Musk makes an announcement today, the value of your land remains intact). In the worst scenario, currency and monetary values will have no stability. Regardless of the world economic situation, the value of land constantly increases.
- Land is Low-Priced
Compared to other real estate assets, land is affordable and requires minimal effort for maintenance. You don’t need to pay utility bills or do repairs. If you can find a vacant piece of land, it will be much cheaper than an improved lot.
- Investing in Land is the best way to Make Money Safely
Selling the land you own is the simplest way you can make money. Land is always a profitable investment as you can make money off it quickly. You can either sell your land or use it for whatever you wish. The more you improve on the value of your land, the higher the price it will go for in the market.
A piece of advice to first time land buyers is to choose properties that are low-cost and easy to customise for their needs. Ensure that the land is free from restrictions, and that the titles have been regularised.
- Buy a Piece of Land in an Appropriate Location and the right source
Vacant land is right now the most secure and affordable real estate investment (It is important to keep repeating this). However, buying land requires time, research, and due diligence. Buyers must consider certain factors when choosing land.
Determine your budget and start looking for trusted sources to find affordable land for sale in an area that suits your budget. It is advisable to consult a real estate agent to find a property that suits your budget and needs.
Conclusion
Despite several investment options available to make money, land outshines its alternatives with the interests it grants. Land is the best investment option out there, even for small investors and buyers with a modest budget (did you know you could make 100% profit from the sale of your land asset within a year?). However, it is important to note that investing in land is for those who are patient and smart.
Think wide and speculate with urbanisation in mind. The profit from investment in land entirely depends on your strategy.
About Afriland Properties Plc
Afriland Properties Plc is a property management, investment, and development company, offering end-to-end services along the real estate value chain, from management to joint-venture investments. We bring innovation to the real estate sector in Nigeria and other African countries by drawing on experience, new competencies, and technology to achieve continuous improvement in service delivery to our clientele.
Let us walk hand in hand with you on your real estate journey, offering expert advice and providing you with the best deals all through the way.
Contact us: enquiries@afrilandproperties.com
Website: www.afrilandproperties.com
Email: sales@afrilandproperties.com
Or Call
Boye: 08038335722
Chika:08033199436
Gladys:08033634460
