Deciding whether investing in land is right for you depends on your personal situation and what is important to you.
- Financial commitment and emotional factors. Are you wanting to make a financial profit from the land or enjoy it and/or leave a legacy for your family?
- Using it and improving it. Can you use the property as is? If you want to add value and/or need to make changes to use the property as you wish, do you have the finances to do so?
- Long-term investment vs liquidity. Land does not convert to cash as readily as other assets do.
- Property characteristics. Location, condition, price and terms, and market conditions all factor in to a property’s current and future value. Be sure to research and consult professionals to determine if a property fits with your investment goals.
- Highest and best use. Changing a property’s current approved use to a higher level can favorably impact value and make it a better investment for you, but this may take time and money.
Check out some of the resources in Land Enjoying in our Toolbox for ways to maintain and enhance the value of a piece of land.