Investing in land is one of the oldest forms of investment. Since the beginning of time, men have tried to own as much land as possible, sometimes leading to violent conflicts. Over centuries, other types of investments, sometimes more profitable, have arisen.
Nevertheless, investing in land remains a great way to diversify your portfolio and multiply the chances of enjoying good returns in the future. In this blog, we show you why you should consider investing in land and maximise the potential of your investment portfolio.
Is buying land only a good investment?
Buying land is a good investment. However, buying only land is not the correct way to utilise your available funds.
Portfolio diversification is the same as spreading your bets. It is a strategy for balancing your investments' risk/reward ratio. A diverse portfolio includes a variety of assets. Better-performing investments can thus compensate for those that are underperforming.
Whilst investing in land may be the first step to building a solid investment portfolio, land should not be its only asset. Financial planning is the best way to ensure that you invest in a broad range of assets and minimise the risk of potential losses. Therefore, thorough market research is required. If you feel that you don't have the necessary knowledge, Holborn's advisers are fully qualified and experienced enough to help you with the task.
Is it a good time to invest in land?
It is always a good time to invest in land if you have the required budget. A piece of land is a valuable asset to own, especially if it is in a good location, and it is one of those long-term investments that could reward you in the future. Don't forget that vacant land can turn into residential properties or commercial properties with prices that can push the value of your portfolio up in ways that you can't forecast now.
Land is a tangible asset
Land is a tangible asset, regardless of the purpose for which it is intended to be used. This is the case regardless of whether the land is being held for speculative growth, future redevelopment, or the plans for the site's longer-term use are not yet known. This is equally true for all different kinds of land; whether in the country or in the city, physical land is an asset that can be touched and felt.
Owning land keeps you stress-free
If you're looking for a good investment, look no further than land. None of the land may be taken or destroyed. No extra work from you is necessary. There is nothing that needs safeguarding, upkeep, or remodelling. Not worrying about market fluctuations such as the ones affecting shares or foreign exchange is a positive factor for your mental and body health. There will always be a market for undeveloped land.
A key element of investing in land is to buy a property that can have something ‘done’ to it one day (e.g. appropriate for building or housing). This will guarantee that your land will increase in value over time without requiring immediate care.
The real estate market is blooming!
There has been a lot written about how the sales market for existing homes is so competitive right now, but one market booming during the epidemic is that of vacant lots.
According to Realtor.com, a U.S. real estate listing website, the sale of vacant lots across the country fell between 2018 and 2019 but has since rebounded, with sales increasing sharply in 2018. There was an increase of 32.4% from January to October 2021 when it came to the sale of vacant lots in the 100 largest U.S. metro areas, totalling 79,289. According to the website's report, the shortage of available homes is to blame for the increase. Overall sales of previously owned homes rose by 13.4% during the same time frame.
Want to invest in land? Ask Holborn Assets
Real estate investments are a great source of passive income. Real estate investing helps you diversify your investment portfolio, and sometimes it may outperform other types of investments, such as stocks, bonds etc., in terms of return on investment. Choosing the right location and the right plots of land is a challenging task for any property market outsider.
With more than 20 years of presence in the financial markets, Holborn is the right partner that you need to accomplish your goals. A wide variety of investment options, including land investments, is available for people who want to boost their financial plans. Our experienced and fully qualified advisers are on hand to help you make the right choice in line with your budget. Get in touch with us today and expand your financial horizons.