Investing in land is as old as time itself and it has overtime proven to be a wise investment choice. Real estate investment opportunities that exist in Nigeria are endless but none can be compared to land acquisition. Land investment is one of the most convenient and profitable forms of real estate investment.
If done right, long term investment in plots of land is one of the simplest ways to begin your journey into real estate and property investment, making returns on investments. More often than not, you hear people ask questions like; is buying a land a good investment in Nigeria? Why should I invest in real estate? Or why should I buy land? The financial benefits of buying land are endless. However, there are factors to consider when investing in a property if you are looking to make good returns.
Below are five reasons to invest in land:
1. Versatility and Availability of Options: Owning a land provides you with diverse options on how to utilize your property. These options more often than not align with the investor’s needs and are guaranteed to provide more returns on investment.
- Residential and commercial building: The idea surrounding this is that you are provided with an opportunity to sell, rent or develop the land-based on your financial capability or expectation. Placing your land on rent and granting permission for a residential building to be constructed means that the value of your property would be increased and steady income is guaranteed. Another option is selling the land to a commercial or residential investor for added value after a stipulated number of years.
- Farming and livestock: A large number of landowners who purchase their properties in areas which are rural or suburban are left with an option of renting it out for farming purposes for a number of years. This serves two main purposes for a landowner, generating money from rent and from appreciation
2. No competition: An investment made inland is one with very low competition, you know why? Lands come in different sizes, locations, and even in different shapes that locating the exact same land is near impossible. Comparing this to the property who have to compete in the ever saturated market. Purchasing land is easier because you would not have to go through the endless process of bidding with other competitors.
3. Land does not depreciate: One amazing reason which makes land purchasing a great real estate investment strategy is the fact that it does not depreciate in value no matter the condition of the economy or even in a pandemic. It can’t be moved, destroyed or affected negatively under situations. So as an investor inland, you can rely solely on the appreciation of your property in years to come
4. Management issues are limited: In comparison to residential property, land doesn’t need any maintenance, unlike properties which require management. For land purchasing to be profitable, the most important criteria are that the land has to be fit for construction. Investors who are always too occupied to deal with tenants, maintenance and managerial issues, the land is a great strategy for making money in real estate passively.
5. Investing in Landed properties provides you peace of mind: Owing to the fact that land is a tangible asset which doesn’t depreciate, wear out over time or stolen, it provides you with peace knowing your investment is secured and you don’t have to be burdened
Investing in land is one of the best real estate strategies for investors. It can be more profitable than any retirement plan if you invest in the right property.