If you are looking for a safe investment that also offers good returns, you would be hard pushed to find a better investment than buying a vacant plot of land. Land is obviously a limited asset, and with an ever-growing demand for land, the price can only go up over time, and with that in mind, here are some of the benefits you can enjoy if you invest in a vacant plot of land.
- Potentially Huge Return On Investment – If, for example, you buy a plot of land, and hang onto it for 5-10 years, the land value would increase considerably. As an area develops, land prices rise, and what might have been an empty piece of real estate when you bought it, could be in a prime location a decade later. Buying land is not for the investor who is looking for a quick return on their investment, but if you are in a position to sit on the asset for a good few years, your ROI will be significant.
- An Affordable Investment – Obviously, a plot of land with no building will be much cheaper than if it had a structure built on it, and for many investors, this is much more affordable than a plot of land with a house.
- Low Maintenance – Buying a plot of land requires very little maintenance, if at all, and other than fencing the land off, there’s no maintenance required at all. If you are looking to keep the land for a long period of time, there’s not much point in keeping natural growth in check, as when you sell, the new owner can clear the land, ready for construction.
- Stamp Duty Concessions – When you buy a vacant plot of land, you might not have to pay stamp duty, and you can check with this stamp duty Queensland calculator that will help you to discover whether or not you have to pay stamp duty on the purchase. There is a first home vacant land concession, and by talking to an experienced conveyancing law firm, you can quickly discover whether or not you qualify. You can also check the government website for any explanation on stamp duty concessions on vacant plots of land, which might prove helpful.
- Less Competition – The number of people who are in the market for buying vacant land is minimal when compared to the number of people who are looking to buy land with a property already built. If, for example, you acquired some land that does not have planning permission, the value of that plot of land will be much higher once the area is rezoned at some point in the future. Of course, there is an element of risk when purchasing land, in terms of whether or not the area develops well, so if you are looking to buy land with no planning permission, in the hope that will change, be very careful.
If you can afford the initial purchase price and are looking for a long-term investment, a vacant plot of land is a very attractive investment prospect that could pay very big dividends.