Land Investments Are A Huge Opportunity
Globally, real estate has been the best low risk long-term investment by the numbers – well ahead of savings accounts, CDs and a number of other asset types. Not surprisingly, the number of individuals, as well as companies small and large that actively and intentionally seek out real estate for investment purposes, has skyrocketed. Many focus on single-family homes or entire multi-family residential complexes and communities. Some target commercial real estate buildings. Then, there are also those that seek out vacant land because, with the right steps, it’s a huge investment opportunity. Over the last ten years in New Providence, we’ve seen an explosion in the construction or expansion of condominium communities, residential subdivisions, and shopping centres. Once vacant, these areas are taking on a new life. Perhaps more will set their sights on unimproved land.
To start with, vacant land has a certain simplicity and stability. It’s a tangible asset. Although tangible, it doesn’t wear out and cannot depreciate. There is no building construction or renovation. There are no building materials whatsoever that could be broken, stolen, or destroyed. Another advantage of buying vacant land is that it is typically cheaper than buying buildings within the same market, making the threshold for entry into real estate favorable. Vacant land can just sit there with minimal holding costs, requiring some but relatively little upkeep and incurring modest tax bills. Since vacant land is less expensive overall than a comparable improved property, it usually costs less to own over time. Meanwhile, its probability to appreciate or increase in value over the same period is good.
In fact, under certain conditions, increases in value can often outpace alternative investments. The growth that comes with owning the right piece of land, in the right place and at the right price, can far outweigh other type of real estate. Zoning revisions and an overarching “path of development” by public and private sector initiatives such as long-term land-use plans, scheduled roadway and road improvements, shopping centres and new residential communities can dictate future expansion where vacant land will eventually be sought after. Land in such areas can go from undesirable to desirable with extremely high returns. New Providence and Grand Bahama have such options to be explored already and key Family Islands may begin to see similar opportunities more and more as well. Some smaller islands and cays are idyllic locations for boutique hotels and residential developments with a variety of support services and industries that would be needed in nearby locations too.
Tracts of raw land can be viable investment opportunities once the proper due diligence is done. And if a large tract of land is not the preference, a conservative investor can still find vacant lots with available infrastructure to consider. One advantage of this approach is having an already established yardstick on desirability, zoning and future profit. On the other hand, for many people, ownership rather than profit is the goal. Purchasing land is not as much an investment in finances as it is an investment in themselves – an opportunity to have a place to call home, opportunity for something that may be a means to support family and loved ones with an eye on the future.
Whether you are looking to buy a parcel of land for yourself or looking to buy land for investment purposes, vacant land can be a promising option. As they say, land is the one thing they’re not making any more of. So, make the most of the opportunity. Contact Better Homes & Gardens Real Estate about vacant land purchases. Visit our website or give us a call. We’d love to help you with your real estate needs.