Why You Should Invest in Land, Not Just Homes

February 18, 2021

Land could be the long-term investment strategy your portfolio needs

Why You Should Invest in Land, Not Just Homes

As Mark Twain famously said, “Buy land, they aren’t making it anymore.” If you are considering buying land in Western Colorado, you came to the right place. 

Investing in land brings about a host of benefits and potential opportunities that might not be available if you’re investing in a pre-built home instead. Land almost always guarantees ROI if you’re willing to wait long enough. Let’s take a look at the benefits. 

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Land is for the Long-Term Investor

If you’re playing the long-term investment game, land is a great asset to add to your portfolio. It is a safer investment than stocks, bonds, and possibly even homes. 

Safety aside, if you’re looking for a quick turnaround, land is not the right investment for you. Much like a 401k, you have to invest strategically and be willing to hold on to your investment even if the market dips. 

When you purchase land, you must consider the land’s highest and best use. If you have a vision for residential development, you could buy a piece of land in a rural area with a low population if you anticipate future growth in the area. While a similar-sized parcel in a populated city would be harder to find and very expensive, you should consider buying land in a rural area and sitting on it until the time is right to either sell it or develop it.

But Land Will Appreciate

Land is a valuable asset that people will always need. Owning it puts you in a very profitable position. Regardless of where you invest, land has plenty of uses for residential, commercial, and agricultural development. 

Furthermore, the longer you hold onto the land, the more valuable it will become. Space is an increasingly valuable asset as it becomes rarer. As Mark Twain said, you can’t make more land. As such, 60 acres of land purchased today might double in value over the next 20 years. 

And Land Gives You More Flexibility

As your land appreciates, there are many different things you can do with it to generate short-term income. As long as you meet zoning and building codes, you can build homes or commercial spaces. If you’re more interested in the appreciation of the land itself, you can use it for recreational purposes or make money by leasing it as it grows in value. 

You Can Even Capitalize on The Short-Term Rental Industry 

Owning land puts you in a perfect position to capitalize on the short-term rental industry. You can get creative with it too!

First, you can build a small structure to list on Airbnb or another short-term rental site. Think about the location and build accordingly. You can build a cabin on land near a national forest. You can build a small house on the beach with glass windows for an incredible ocean view.

Perhaps the property already has a home or cabin on it that could be used to generate income through either short or long-term rentals. Finding a good long-term rental could be a benefit when it comes to monthly income and possibly maintenance or land care in exchange for a portion of the rent.

There are also short-term rental opportunities for the land itself. You can rent out your land per growing season for crops and farming. Additionally, you can rent out your land to local ranchers to board their livestock. Many local ranchers or farmers would be willing to mend fences or irrigate pastures for the ability to place animals on the property or grow crops. You can also negotiate a monthly boarding fee or split the crops at the end of the harvest.

The best part is that you can make money from creatively renting your land while it’s appreciating all by itself. By the time 20 years pass and you’re ready to sell your land for more than what you paid, you’ll have made a bunch of money renting it in the interim. 

Land in Western Colorado

Are you convinced that land is your next investment? Western Colorado is crawling with land that’s perfect for pasture boarding, short-term rentals, and small developments. Whether you want to buy, sell, or lease, I can help you find the right land. Check out my active listings below and reach out to explore more.