People and companies buy land for a variety of reasons, some personal reasons and other reasons having to do with business. Investment land is all about business and profit, whether it be through re-sale of a particular lot or through development of that lot. Those who invest in land for personal reasons may do so for their own businesses or for their living purposes. Let’s take a look into the difference in land investments in a bit more depth.
Investing in Land for Personal Use
Investing in land for personal use is still an investment; the difference between business and personal investment is that the benefits of personal land investment are different. The gain is not in dollars, but in use. People invest in land for personal use for things like the building or expansion of homes, the building of structures for business, or personal things like pleasure. Although there are benefits to this type of use, the investments are not made for immediate gain as business investments are.
Investing in Land for Profit
Both individuals and companies can invest in land for profit. There are multiple ways in which this type of profit can be gained from such an investment.
Land Flipping: Land flipping is a popular way to invest in land for profit, especially for those who are new to the idea. This type of investment has to do with purchasing land, holding it for any length of time, and then reselling it for a profit. This may be done for a variety of reasons and is most profitable when land is obtained at a discount. The best way to get cheap land is often when it is distressed, like through a public auction. Pocket listings are another great way to get land cheaper, but these are often a bit more difficult to obtain.
Developing Land: Developing land is another great way of investing in land for profit. This can be done through flipping the land and selling it to someone for development or actually purchasing it and developing it yourself. Land development is a profitable way of investing in land, but proper surveying and zoning is an essential part of this process, often making it a type of land investment with a more costly start-up budget.
Investing in land for business is a great way to make money, but investing in land for personal use is a great way to invest in yourself, your family, and your future. Decided what type of investment is best for you and take steps toward accomplishing those goals.