When building wealth in your real estate portfolio to create a secure financial future, diversity helps to ensure a hedge against inflation, so you should spread your Investments across every market sector. In this way, should one sector of the market experience a bumpy period, your other investments can carry you through.
While it may seem like raw or undeveloped land is rather dull, this market sector is an underappreciated investment opportunity, offering investors a multitude of exciting and creative uses that can create cash flow. For example, investors can temporarily rent vacant land to seasonal roadside vendors in the right high-traffic location or store RVs, Boats, or larger vehicles.
Read on as we explore five reasons to add land to your MA real estate portfolio.
If you’re just getting started as a real estate investor, the low entry cost is a highly attractive reason to add land to your MA real estate portfolio. Often, investors can purchase land for a few thousand dollars, and there is no need to involve the complications and added expenses of carrying a loan on a smaller investment. In addition, this sector requires very little hands-on activity, so novice investors can feel more secure about their first steps when they add a piece of land to their portfolio.
Because there are no improvements, there is nothing for the weather or time to reclaim slowly. Thought of as having an infinite useful life, land doesn’t depreciate, which is another good reason to add land to your MA real estate portfolio.
Unlike rental properties, land requires very little of your valuable time. In addition, land has an extremely low maintenance overhead, which are good reasons to add land to your MA real estate portfolio. While some parcels must be well kept, such as vacant lots in more developed areas that owners must mow regularly, there is still a low yearly expenditure. Of course, there will always be taxes, but this is typically a reasonably low expense for land without improvements.
As history has proven, because there is a limited supply of this highly demanded asset, your land will only increase in value. Therefore, whether or not you choose to use your land to create cash flow, you can rest assured that, when held over the long-term, you’ll realize sizable capital gains on the investment, which is an excellent reason to add land to your MA real estate portfolio.
Unlike the housing market, where bidders can get caught up in the competition, leading to bidding wars and overspending, the atmosphere surrounding a land sale is more laid back and relaxed, which is another reason to add land to your MA real estate portfolio. In addition, because the sellers don’t live on the property, you won’t have to deal with owners who’ve placed unrealistic values on the parcel, leading to highly charged emotions that can explode during negotiations over a home.
Let the experts in buying land at Winter Hill Homes help you get started on the right foot when you’re ready to add land to your MA real estate portfolio. With their fingers on the pulse of the real estate market in MA, a professional investor at Winter Hill Homes can help you locate the property that best suits your needs and budget. In addition, the professional investors at Winter Hill Homes keep investors informed of any upcoming plans and significant market trends that influence the long-term value of investments. And don’t forget to ask about the current land inventory at Winter Hill Homes of the best investment properties available in MA. Contact Winter Hill Homes at (617) 684-5363.