Investing in land is a great way to build long-term wealth. However, there are many factors that need to be considered before diving into this type of investment. In this blog post we will cover five things you should know about investing in land so you can make an informed decision and avoid any costly mistakes.

• Investing in land is a long term investment. You should be able to afford the property for at least five years, and ideally ten to fifteen years before it turns into profitable returns. Otherwise you may find yourself struggling with cash flow as the mortgage payments are due every month while your rent checks come maybe once or twice annually.


• Before buying any piece of land, buyers need to determine what type of return they want on their money (capital) invested into this asset class; this can vary depending on factors such as location, price point relative to other properties nearby, time frame required for profitability, etc.

• Determine what type of land you want. There are many types of land investments: raw properties with no buildings/infrastructure on them; raw properties with infrastructures such as roads/bridges, but not any commercial or residential development yet; farmland - which can either be developed into agricultural uses like crops or livestock farming operations(i.e., raising cattle), or used for recreational purposes like golf courses/golf clubs); undeveloped lots which have been subdivided from larger tracts of property but do not currently have any utility services like paved roads, electricity or natural gas lines.

• Costs of land are usually driven by the local market and popularity in certain areas to develop properties for commercial/residential purposes. For example: land that is near a new development project may be more expensive than land in an area where there are fewer available sites left. Farmland will likely fetch a higher price per acre if it's close to water (e.g., river) which would allow irrigation on site without having to install expensive pumps.

• Investors need to consider the lifestyle they want if considering a land purchase for themselves to live on. For example: is it important for you to be close enough so your kids can get home from school without driving? If this is not part of your desires, then an undeveloped lot may be more suitable because you will have less out-of-pocket expenses (e.g., roads). Or does work location require living within 20 miles or 30 minutes drive time? This would mean renting property nearer town rather than buying property farther away if you dislike commuting long distances each day.

Whether you’re looking for a way to diversify your portfolio, plan for retirement or just want to make sure that there's always something for the grandkids when they visit, investing in land is an excellent option. While it can be a bit more complicated than other types of investments and may require some initial capital investment, it has many long-term benefits.

If you're considering this type of purchase but don't know where to start, we've got plenty of information here on what you need to consider before making any decisions! Don't hesitate to reach out with any questions.

One thing we would recommend? Booking a business consultation with Perfect Skip today. Our team will help walk through all the different factors.