Land has always been valuable; here’s why it’s a worthy investment.
Land has long been considered a valuable commodity. Land ownership used to be considered a mark of power and status, with lords owning many acres of land and vassals working the land. We’re not in the feudal system anymore, but we can still benefit greatly from having land at all. What makes land a good investment?
Limited Supply
Anything with a limited supply is automatically more valuable. There is only so much square footage on this globe, and most of it is water. Land is valuable, even as property changes ownership from generation to generation.
Not Very Liquid
Land is not always totally permanent. In the worst cases, land can be completely altered by a natural disaster, such as a flood or landslide. Over hundreds of years, soil can accumulate and bury past structures. In the short term, in normal circumstances, land doesn’t really change, and it is not very liquid in terms of selling. With closing costs, consumer demand, and the time it takes for land to appreciate, it is not so easy to buy or sell land, but it is generally a stable source of wealth preservation.
Low Competition
Land lots have lower competition than residential or commercial real estate. With land, you will have to either hold it for a long time or develop it according to its zoning, whether residential or commercial. Even so, lower competition means you won’t have to worry so much about bidding out other buyers.
Appreciates Over Time
Land generally does appreciate over time, even with real estate market highs and lows. Like any other investment, it can be bought at a high or at a low, but it is possible to recoup the costs by holding, developing, or renting out, even with the maintenance costs.
Potential for Development
Undeveloped land, with or without utilities, has the potential for great development and a great return in value. Before you develop any land, you must be certain that the land you purchase is buildable, in an optimal location, has road access, and is not at risk of flooding or fire.
Can Be Low-Maintenance
Holding land is easy. If you have no plans to develop commercial or residential land much, you can let it be and do only what is necessary to keep it healthy.
Trust the Professionals at Clagett Enterprises for Your Realty Needs
If you’re looking for an experienced property management company, the perfect realtor for your property, or a professional to assist you during your purchase of any home, you can rely on Clagett Enterprises. Clagett Enterprises is a full-service real estate company with almost 30 years of experience in the Frederick and Western Maryland area. For assistance with commercial sales, leasing, management, and development and consulting, contact us online or give us a call at 301-665-6009. To meet our team and see some of our beautiful homes, follow us on Facebook and Linkedin.