Land Investment Strategies That Have Stood The Test Of Time

For hundreds of years a land investment has been a very safe way to invest your money. By investing in land your money will be safe from the ebbs and flows of recessions and inflation. You can also watch your nest egg increase in value as the years go by. The history of investing in land literally goes back as far as recorded history. The wealthy accumulated land in ancient times through conquests to increase their wealth and status. To have land meant that you were a person of importance. Fortunately, those times are behind us and anyone can now own land. By using a simple land investment strategy, you can slowly build wealth for your retirement by using other people's money. Let's take a look at three real estate strategies you can use to accomplish this.

One of the easiest land investing strategies involves buying a tract of unimproved land, clearing the brush and debris from it and then developing a business out of it. This simple strategy is used all the time. As an example, a person could take a piece of overgrown land and clear it for use as a farm. Just the land cleanup alone will result in an increase in the land's value. Later, the owner could grow crops, tend livestock or even plant hardwood trees that can later be harvested for a profit. There are many great options that could be used. One of the great things about this strategy is that the land could be farmed for a lifetime of income and then passed on to children for their livelihood.

Purchasing a tract of land to construct either commercial property or housing units to lease is another viable land investment strategy that has stood the test of time.  Before you invest any money in this type of strategy, be sure to check the local zoning laws in your area to be sure that the land you are considering is properly zoned for such buildings.  In this strategy the owner/investor simply buys a tract of land and constructs either office buildings, warehouses, manufacturing facilities, rental apartments, or whatever the local market demands.  In this strategy the owner makes a down payment (usually around 20 percent of construction costs) and finances the remainder.  The monthly lease receipts from tenants are then used to pay off the mortgage through the years.  the best thing about this strategy is that eventually the property will be completely paid for.  The owner can then sell it and purchase a retirement annuity or continue to own the property and just live off of the monthly lease receipts.

There are many real estate investment strategies that can be implemented but the last one we'll look at today involves buying distressed property (foreclosures) at a discount and then quickly reselling them for a profit.  A distressed property is any piece of real estate where the current occupants/owners can no longer pay the monthly mortgage payments.  In this case the bank is usually very close to taking over the property.  Since banks are usually not really interested in being home owners, it is usually possible to purchase a foreclosure property for as much as 20% less than what it is valued at.  The land investor can then immediately sell it for a profit or can make improvements to it first to give it even greater value.  This strategy is commonly referred to as flipping.

There are so many great land investment opportunities and strategies that it's frequently difficult to choose just one.  Land has typically been a much more stable investment vehicle than stocks, bonds, options and others.  Definitely take the time to find a strategy that works for both you and your budget.