Making a long term investment is one of the smartest things you can do with your money. Over time, your money will grow and you’ll have even more disposable income. One of the best forms of long term investment is purchasing land and then reselling it at a later date. There are many perks of investing in open land, some of which make buying open land a better investment than buying established real estate. So what are the advantages of investing in land? 

More Affordable

One of the biggest perks of investing in land is that it is usually much cheaper than investing in already established real estate. Bare land has no buildings and very few amenities on it, meaning that its value is much lower on the open market. This means you could buy acres of open land for the same price that you could buy a small amount of land with a house on it. Obviously, this reduced price has a major advantage, as it allows you to buy up large chunks of land when you usually can’t. Even though some work must be done to these lands to make them profitable, buying large amounts of open land can be a great investment if done correctly. 

Fewer People to Bid Against

Another perk of investing in land is how passive the market typically is. While this doesn’t mean that there is no competition for open land, there certainly are fewer bidders than there are for established real estate. This does several things for the land purchasing process. First, this makes land much cheaper as mentioned previously. In addition, it makes the land buying process much simpler and less cutthroat. Staying ahead of other bidders and negotiating with sellers can be very tiring when buying real estate. However, when buying land you only have to worry about these things to a lesser extent due to the fact that the market demand is much lower. 

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Perhaps the biggest perk of purchasing land is the freedom and ability to do whatever you want with it. For example, you can create passive income by purchasing land to lease for solar farm or other renewable energy infrastructure. However, when purchasing traditional real estate, buyers are usually shackled to the buildings and amenities already on the property. Destroying these would be expensive and would make the investment not worth it. However purchasing land doesn’t come with these already built structures, meaning that you can do whatever you want with the land. You could turn that open land in Michigan you just bought into a place for your house, or you could use it as a grazing area for farm animals. Buying real estate in town or in the city doesn’t allow you this type of freedom, which is why freedom is a huge perk of buying land. 


A huge advantage that land has over other types of investments is its natural ability to appreciate. There is a finite supply of land, as land can not be created in a general sense. As a result, the supply of land cannot rise to meet the increased demand, causing the value and price of land to go up. This means that your land can actually appreciate and increase value just from you holding onto it for an extended period of time. If that’s not enough for you, you could always add onto the land to improve its value and then flip it for a higher price. Doing this will cause you to put more money into the land, but it could also result in a much larger payoff. Regardless of what you choose to do, there is plenty of potential for your investment in land to pay off, both naturally and artificially, making it a great investment. 

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