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 FLORIDA real estate portfolio.
Easy Entry
If you’re just beginning your journey as a real estate investor in FLORIDA, the appeal of low entry costs makes adding land to your portfolio an enticing option. Unlike more expensive properties, land often presents a straightforward purchase opportunity for just a few thousand dollars. This affordability means you can start building your real estate portfolio without the burden of a hefty mortgage or the complexities of loan approvals, making it accessible even to those with limited capital. Moreover, investing in land typically involves minimal ongoing maintenance or management, which can provide a sense of security for new investors who may be cautious about their initial foray into the market.
For novice investors, the simplicity of land transactions offers a relatively low-risk introduction to real estate investment. Without the need for constant hands-on involvement or extensive property management, beginners can focus on learning the fundamentals of real estate ownership and market dynamics. This hands-off nature also means less time spent on day-to-day operations and more opportunity to observe market trends and develop a strategic approach to expanding their investment portfolio. By starting with land, new investors in FLORIDA can lay a solid foundation for their future ventures in real estate, leveraging affordability and low operational demands to gradually build their expertise and assets in the market.
No Depreciation
Investing in land can indeed be a strategic move, especially in a market like FLORIDA. Unlike buildings or structures, land is often perceived as having an infinite useful life and does not depreciate over time. This makes it a valuable addition to any real estate portfolio, offering stability and potential long-term appreciation. Moreover, land investments can provide opportunities for development or resale, depending on market conditions and zoning regulations.
In FLORIDA, where property values may fluctuate due to various economic factors, land can serve as a hedge against market volatility. Its enduring value ensures that it remains a reliable asset even as other investments may face ups and downs. Whether for residential, commercial, or agricultural purposes, acquiring land in FLORIDA can offer investors a chance to capitalize on future growth and diversify their holdings with a tangible asset that holds its worth over time.
Low Maintainance
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 FLORIDA 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.
Long-Term
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 FLORIDA real estate portfolio.
Little Competition
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 FLORIDA 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 Core Real Estate Properties help you get started on the right foot when you’re ready to add land to your FLORIDA real estate portfolio. With their fingers on the pulse of the real estate market in FLORIDA, a professional investor at Core Real Estate Properties can help you locate the property that best suits your needs and budget. In addition, the professional investors at Core Real Estate Properties 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 Core Real Estate Properties of the best investment properties available in FLORIDA. Contact Core Real Estate Properties at 239-360-3176.