It’s always smart to invest in the right product at the right time and real estate is no exception. But during this unprecedented time of COVID-19, should you stop investing in real estate? Or would now be a time to leverage the market to your advantage?
Why is Land a Good Investment Now?
While the real estate market might seem uncertain right now, you can actually capitalize on that uncertainty and make a tidy profit. As COVID-19 continues to press the pause button on many parts of our economy, property prices are going down. That means that while it’s not an ideal time to sell, it’s a great time to buy!
Successful real estate investors and entrepreneurs know how to look ahead of a crisis and turn it into an opportunity. First and foremost, it’s vital that you interpret the COVID-19 pandemic as temporary. Although prices on vacant land are down right now, they’re bound to shoot right back up again in time. Now is a unique opportunity to purchase land parcels from sellers who may be more interested in liquidating for cash than holding onto their properties for long term gain. After the market adjusts, you’ll then be able to sell at a higher price.
Benefits of Investing in Land
Keep in mind that as time goes on, vacant land becomes an increasingly limited resource which illustrates the basic economic principle of supply and demand. As supply is reduced, demand for a desirable product or resource will increase which means if the opportunity affords itself, making a smart investment in land will be to your benefit. Buy low and sell high, that’s the key to making money off of investing in anything. When buying residential land, you should buy strategically. Conferring with an experienced real estate firm is arguably one of the best ways to develop an effective buying strategy for investing in any type of property, especially land.
Another reason why vacant residential property is advantageous from an investment perspective is that unimproved land requires little maintenance. If you invest in residential homes, you will be faced with significant expenses and responsibilities as you will have to keep them maintained. Typical maintenance responsibilities for residential homes include lawn care, roofing, plumbing, heating, etc. When you buy vacant land, you aren’t bogged down with so many additional responsibilities.
Vacant land can be a great investment for the right person but before you go out and buy yourself a piece of property, you need to know what to look for. Is the area likely to experience growth or higher prices in the near future? What is the surrounding zoning? Are there any environmental concerns you should be aware of? What about ease of utility and sewer access? Are there plans for expanding roads or adding exits to highways nearby? An experienced real estate agent will be able to help you answer those questions and more. With proper due diligence, your investment will have a much higher chance of paying off.
Know How to Play It
Investing in real estate takes a lot of capital. Whether you’re raising the capital yourself or financing it, you should know how to play your cards right before you get into the game.
In order to play your cards right you’ll need to know when to buy, when to hold, and when to sell. COVID-19 is making an impact on all three of those factors. Currently if you own vacant residential land it would be prudent to hold until the market recovers unless of course your goal is to obtain liquid assets. If that’s the case, cashing out now before the market is potentially saturated would be a wise decision.
Presently, it’s a favorable time to buy for long term investment. If you can invest and hold, you can make a lot of money off of buying vacant land now and selling it later. The amount of money you can make is limited only by your imagination and access to credit, capital, or both. The most important thing to keep in mind is that you should always consult with a reliable real estate firm when making large investment decisions such as this.
Partner with a Real Estate Company You Can Trust
The Meridian Real Estate Group has well over a decade of expertise in investment land transactions. We are a full service real estate team that can handle smaller single investments to larger tracts of land including assemblages. Land deals require specialized proficiency that most residential agents don’t have, however with our years of knowledge and experience you can be assured we will guide and represent you effectively. Contact us today at 678-631-1723 to get your process of investing in land started. We look forward to serving you.