Buying land is an often overlooked option for real estate investing. Most individuals think of buying land in terms of building a home rather than buying an existing home and renovating.
But have you ever considered buying land as an investment? There are many benefits to owning land as an investment and here we will briefly discuss a few.
With zero to minimal maintenance costs, the percentage of return on investment can be rather substantial. Yes, it’s an asset that you own and pay taxes on but those taxes are super low compared to developed land. As an undeveloped parcel of land, one can hold this in their portfolio for extended periods of time while the area around it gets developed by other people which can increase the value of the land to sell at a later date.
West Jefferson, North Carolina is one of those areas that is experiencing tremendous growth and will continue over the next number of years. This creates a specific opportunity to buy land to either hold or develop. Choosing to develop the land will require additional investments but can also speed up the rate at which the particular land and land in the area in general appreciates in value.
Remember, as time goes by and Ashe County continues to develop, not only will the price of land increase but the availability of land for sale will decrease.
As with all areas, there is a finite amount of land available to purchase. So, when land becomes available, it should be something to consider for any investor as much as anyone wanting to build their own slice of paradise.
For anyone considering purchasing land as an investment, beyond holding the land while it appreciates, it can also be used during that time as an income producing investment. How, you say?
Well, despite the fact that land in West Jefferson will continue to increase in value as the county as a whole continues to develop and all real estate appreciates, there are several great ways to generate an income while that happens. We don’t need to go into detail about any of these options at this time. This article is only meant to bring attention to some of the possibilities for those considering investing in land and therefore the community.
First, and possibly the most obvious, the land can be developed into a residential area. The next obvious choice is to develop the land for local businesses to to move in, pay rent and serve the community needs. Both of these also can also increase the value of the surrounding real estate as more people and businesses move into the area.
Other ways to create an income from land while it is waiting on the target appreciation of the investor that may require less development expenses?
Well, the third most obvious option in the West Jefferson area is probably Christmas trees. Even if the investor doesn’t want to be the farmer, there are several Christmas tree farmers with growing businesses that could lease your land and create a maintenance-free property for the investor.
Another set of ideas could involve serving the large number of outdoor enthusiasts that are both locals and visitors in our area. With so much beautiful countryside to explore and our accessibility to the Blue Ridge Parkway, West Jefferson and Ashe County attracts thousands of people annually to hike, camp, get married, explore and more. Any venue that serves these interests will be a great way to support our community and create an income from your investment into land.
And for goodness sakes… get yourself a real estate agent! Having an expert on your side will help you make the best investment for long and short-term profitability.
Call our office today and let us help walk you through the options and let our experience and knowledge of the area help you make the best decision for your investment!