Investment Land Feasability
- Land Location |
- How to Buy Land |
- Land Features |
- Investment Timing |
- Opportunity Costs |
- Community Acceptance |
- Single Lot Investments |
- Residential Lots |
- Speculative Lots |
- Lease vs. Resale |
- Building to Suit |
- Acreage |
- Acreage for Resale |
- Land Evaluation |
- Land Promotions |
- Land Bankers
Land Investment Timing
"Buy low and sell high" is axiomatic to any investor seeking a profit, and proper timing has a great deal to do with both of these accomplishments.
Timing is a particularly important factor in real estate investment because, by their very nature, these investments are long term. In fact, real estate is often considered to be a non-liquid investment. Often, it is easy to buy real estate but quite a bit more difficult to sell it; in some unfortunate instances, it can become impossible even to give it away.
Land speculation requires a greater awareness of timing than many other real estate investments, because most land does not produce income during the holding period. It is held by the investor pending a rise in value. The longer this interim holding period, the lower the investment's annual yield will be.
In addition to the land's initial purchase price, the investor must make cash expenditures for mortgage payments, property taxes and improvements to the land. Unless the property can be leased for some income-generating activity, vacant land requires constant financial support during its investment life.
Depending on a lot's location and characteristics, some owners will seek to minimize their holding costs by renting their properties as parking or used-car lots during the waiting period. Owners of larger parcels have found it expedient to develop farm or ranch operations while waiting for the property to appreciate in value.
Leasing the land to tenant-farmers on a profit-sharing basis will often produce enough tax-sheltered income to carry an investment.
- Land Location |
- How to Buy Land |
- Land Features |
- Investment Timing |
- Opportunity Costs |
- Community Acceptance |
- Single Lot Investments |
- Residential Lots |
- Speculative Lots |
- Lease vs. Resale |
- Building to Suit |
- Acreage |
- Acreage for Resale |
- Land Evaluation |
- Land Promotions |
- Land Bankers
