Investing in Fort Myers land can be a great way to boost and diversify your portfolio. It is a fairly low-maintenance and hassle-free way to increase your assets and overall wealth. In our latest post, we will take a look at some of the pros and cons of land investment in Fort Myers!
Land investment is often times overlooked, however it can be an excellent asset to any real estate portfolio. If you want to begin your investment journey, add to a portfolio, or find smart ways to diversify, land can be an excellent way to go.
Pros:
Low Cost
Land frequently emerges as a more economical investment alternative when compared to other asset classes. Many individuals discover that they can save for only a few months to amass sufficient cash to purchase a plot. This accessibility acts as a starting point for aspiring investors who may have felt uncertain about how to embark on their journey. With the right property, you can procure land at a minimal cost, then either sell it or develop it to generate profits. These returns can be reinvested into larger ventures, hastening your progress toward becoming a successful real estate investor. It all commences with a single parcel of land and the vision to shape it into a lucrative investment opportunity.
Low Maintenance
When you buy land, the is pretty much no work involved. It just sits there until the time is right for you to cash in. You might have to deal with small things, like keeping the lot free of brush and trash if it is in a residential neighborhood. You will not, however, need to deal with bad tenants, repairs, maintenance, or damage to your property.
Lower Taxes
Property taxes for land tend to be substantially lower compared to lots with structures. While land taxes may amount to a few hundred dollars, taxes for homes can reach into the thousands. This significant difference in holding costs further contributes to the appeal of land investment for many individuals.
It Can Be Developed
You can opt to develop the land yourself, adding a residential or commercial building depending on how the land is zoned. By creating something where there was once nothing, you will be able to generate tremendous profits renting it out or selling it off.
Make It Income Producing
While some people shy away from investing in land due to its lack of immediate income generation, there are creative ways to make it work for you. Consider leasing the land to neighbors for additional parking space or as a play area for their children. If the parcel is sizable and permitted, you could lease it to hunters. In commercial areas, you might utilize the lot for parking during special events. By exploring these and other inventive approaches, you can find ways to generate income from your land investment beyond traditional methods.
Cons:
No Income
Land typically doesn’t generate income unless you implement creative strategies. While there are exceptions, as mentioned earlier, in most instances, the property remains dormant until it’s developed or sold. This highlights the significance of seeking land in developing areas, with the intention of selling it when it evolves into a more sought-after location.
Slower Appreciation
The value of land may not rise as quickly as housing would depending on your market. The profits you do see will likely be smaller than what you would find with a residential home.
In summary, integrating land into your investment portfolio is a wise and sensible decision for investors of all levels of experience. It provides a cost-effective entry into real estate investment compared to other asset classes, rendering it an appealing option. Therefore, it’s prudent to always consider land investment when evaluating real estate opportunities in Fort Myers.