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Is Buying Land A Good Investment?

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The most typical question that a person considering purchasing land in Alberta may have, is if there is an assurance of a favourable return on the investment that they are about to make? Few investments can be labelled as solid, but a land investment is quite often a sound investment.

To ensure you have a good return, you can rely on Hansen Land Brokers to advise you on the best land prospects in Alberta and inform you of the changing variables that may impact the investment value of the land you are interested in owning.

“Land… the indestructible asset.”    Shawn Hansen

Types Of Land Investments

There are different types of land you can purchase that will suit your unique plans and needs. It is imperative to identify your goals and plan how you will use or develop the land before investing. You can buy land to serve the following purposes:

  • Acreage for crop and livestock purposes
  • Land for small scale farming purposes 
  • Land for Residential purposes
  • Land for Commercial and Industrial purposes
  • Land simply to own and hold

 

Reasons Why Land Is A Good Investment

It Is An Easy Purchase

Despite the consultations and paperwork that is usually involved in the process of owning land, land deals are private transactions. As a landowner, you are easily able to acquire more land, once you identify what your specific requirements are.

Offers Flexibility

Uses of land are flexible. You can choose to develop your property and build structures for residential or commercial purposes or choose to do nothing with it for some period. If you are not sure of how you would like to use your land, we can inform and help you weigh your options to settle on the option that best serves your goal. At the end of the day, whatever you choose to do will come with desirable results, even if you choose to sit on it for a few years.

Retirement Plan

As years come and go, you will likely wonder how you will spend your retirement and manage to maintain yourself financially. With land investments, you may purchase with the intent of benefiting from it years later when you retire. Apart from making the land generate constant income, you can also use the land for your personal use and keep yourself busy by operating it. 

Land Appreciates

Even if you have invested in a piece of land without a solid plan for it, you can expect to benefit from it later on as the value of land appreciates. Land situated in good locations, especially where there is rapid development, is sure to increase in value in a short time frame. To maximize this benefit, you need to conduct proper research and buy land at the most optimum time.

Steady Source Of Passive Revenue

Land is considered to be a source of significant potential passive revenue. The best way you can earn passively from your land is by letting it sit for a few years as its value appreciates then selling it off when the deal is irresistible. You can also lease it out or develop the land and rent it out to get a steady flow of income.

Competitive Deals

The land market has seen a steady spike in the number of land transactions. Investors are always looking for land to purchase, and this competition creates a challenge when locating suitably priced land deals. Auctioning certain pieces of land and properties as a way to drive exposure to them, or if they have been slow to sell, is one way you could acquire land for a really good price.

Low Maintenance

If the land you have purchased is raw, you will not be required to spend so much on its maintenance. You will also be free from issues of dealing with building regulations, property taxes and renters if you have rented it out. Simply put, there are low costs associated with maintaining a typical bare piece of land.

Land Is A Tangible Resource

As a tangible asset, land will always be there. It is something physical that you can legally claim by ownership. Being tangible also gives you peace of mind as you are assured of a long-term value investment.

Investment Liberty

You are not restricted to do whatever you wish with your piece of land. The options are endless, and this is a great thing as most investments limit investors to just a few options. As long as you remain in good standing with the regulations imposed on you as a landowner, you are free to do whatever you wish with your land asset.

Land Adds To Your Net Worth

If you are interested in diversifying your net worth, purchase land. You can then develop it by putting up residential or commercial buildings. This will boost your financial security and add more value to your investment portfolio. 

 

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Making A Profit From Your Land Investment

For some land investors, they aim to own land and profit from it. With careful planning, it is possible to profit from the land you have purchased and enjoy a great return. You can count on Hansen Land Brokers to give you valuable information on the best strategy to profit from your land and to put you in touch with the experts for tax and estate planning. Some of the ways you can benefit from your investment include:

Leasing Land

Individuals, as well as businesses, lease land for their business operations on a yearly or seasonal basis. To be able to lease land, it is advisable to have land that is undeveloped since many who wish to lease do it for farming or livestock purposes.

Land Development

Land can be developed to increase its value and get a steady flow of revenue over time. Hansen Land Brokers will advise you on the most sustainable types of development that can be done on a piece of land including putting up residential units and creating commercial complexes. 

Keeping Land

If you have raw land, inflation and passage of time will significantly increase your return on investment as the land value appreciates. Investors buy and keep land for appreciation purposes. This is a very profitable strategy, especially for those who got land below the average market value in auctions or trade-offs. 

Subdivision Of Land

If you own raw land in Alberta, you can often subdivide it into several portions and sell different parcels, making substantial profits. By dividing the land into lots, the value of the entire land appreciates. If you decide to follow this path, make sure you follow the mapping and legal requirements that govern the subdivision of land. 

 

If You Have The Ability, You Should Own Land!

When it comes to investing, land tops the list as a viable investment commodity. The needs of investors vary from one to another. Some may want to quickly develop the land, while others wish to purchase and lie in wait for the opportune moment to decide what they would like to do with their land.  Just like any other investment, purchasing land in Alberta has its own share of benefits and risks. However, we are here to guide you to identify and follow key strategies that will ensure that your land remains safe and valuable for a long time. 

The present market circumstances, demand for homes, the local economy, and the new house construction boom will all have a significant impact on how you profit from your land investment. Hansen Land Brokers will assist you to understand your exit plan, analyze your alternatives, and make profitable decisions that will benefit you in the long run. Contact us today and get professional advice on your land investment options.

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