PreConstruction Land Investing – Why you Should Consider it
Most people think investing in land is only for big-time real estate developers looking to buy large parcels of land for commercial development or the subdivisions of homes. What they don’t realize is that investing in land is one of the most sound investment strategies available today and is a viable opportunity for most investors, both large and small.
So why should you consider investing in land, rather then an already improved real estate property like a single family home, apartment building, commercial structure or other improved property? Undeveloped land offers several investment advantages that can not be found in most developed real estate.
The advantages of investing in land…
* Higher profits – Annual Return on Investment
* Ground floor with less risk
* Superior financing terms
* Greater flexibility for maximizing value
* Simple investment management
Regardless if you are looking for a real estate property for investment purposes, or as a site for a future home; investing in land is proven to offer a safer and higher return on your investment than any other financial instrument available today. Traditional investments (stocks, bonds, etc.) over the past couple of years have seen average returns of 4-8%. In contrast, real estate and land investments have realized cash on cash returns of greater than 200%; with less risk.
Why Invest in Pre-Construction Planned Developments?
Real estate investors looking for “ground floor” land investment prospects are finding pre-construction planned developments to be the perfect opportunity. With the majority of land projects being in primary and secondary home locations, a smart investor gains the benefit of being in a desirable neighborhood location with only a small percentage of other investors (less tenants and more owners means more stability).
With price appreciation of second homes rising faster over the past two years (17 percent) than for primary homes (15 percent), many homebuyers see owning a second home as a “you can’t lose” proposition, enjoying the fact they can have an outstanding investment while enjoying also great second home location to use for themselves and family.
Real estate experts agree that the near-term outlook for the second home market is strong; even stronger then the primary home market. So what is fueling this booming market for second homes, especially in Florida and the Carolina’s.
The Baby Boomer Factor…
* Baby boomers make up an incredibly large % of our population; all moving towards retirement age over the next 15 years.
* About one half of these people have no intent on staying in their current locale when they retire.
* Even though many boomers are ill prepared for retirement, there is still a significant % with tremendous wealth;
* Many of these people want to live in places with good “lifestyles”, with 42% of them choosing the South Atlantic area for their retirement.
According to American Demographics Magazine, “The south is the center of a real estate boom of monumental proportions”. Searching for a warmer climate and a simpler way of life during retirement are their primary motivation. With close to 75% of potential retirees expressing an interest in moving below the 35th parallel, an estimated 50 million people could be moving to the south over the next 20 years.
It is this Baby Boomer demographic that is driving the appreciation and sales volume of second homes in the south. This marks a new and unprecedented era, as it is the first time in history we have ever seen this kind of significant shift in real estate buying patterns. As we are currently in the very early stages of this major demographic shift, the smart investors are taking advantage of this knowledge, purchasing now and have the peace of mind of a safe and reliable exit strategy when they want to sell. In addition, the smart investor will experience dramatic appreciation during the holding period while reducing their overall risk by focusing on real estate purchases in the South East United States.
At Buy Vacation Condos, we can assist you with the purchase of the perfect parcel for your investment portfolio or future residential home-site in one of these sought after developments. As property values continue to increase at a rapid rate, the time to make your investment is now.
Additional Reasons to Act Now…
* Lock in low payments now. Act now while interest rates are at the lowest they have been in 20 years.
* Little to no effort required (turn-key investment).
* Save money by investing at today’s pricing. As more and more investors are taking advantage of these opportunities, the price points continue to rise, sometimes on a monthly basis.
* Availability; the best opportunities available today are the ones that are typically gone tomorrow. When you hesitate, you could miss out on a one of a kind opportunity.
* Invest now at pre-construction prices. The smart investors will purchase their property before all the amenities are in place. Amenities like roads, golf courses, schools, club houses, recreational facilities, nature trails, marinas, boat ramps, swimming pools, etc. all add value to the property. By investing now, you can enjoy pre-construction prices, which are almost always guaranteed to be below the selling point once the amenities are in place.
So whether you are looking for land in a luxury planned residential & resort community, waterfront investment property, golf community land properties, or land sales in pre construction development sites. Bringing you unique, proven investment opportunities from the ocean, to the mountains and every place in between. “Real Opportunity for Real Investors”.
By: Doug Lasley
About the Author:
Doug Lasley (Real Estate Broker-Associate) info@BuyVacationCondos.com http://www.LANDDepo.com 407-876-5771
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Categories: Flipping Land Tags: Investor Gains, Price Appreciation, Traditional Investments
Subdividing Land – How To Unlock The Profit In A Large Block
Subdividing land can be a profitable investment strategy. Unlike buying run down homes that need a lot of manual labor, subdividing a block is a lot quicker and simpler providing you do your due diligence before you buy. In fact the profits are made when you buy, not when you sell.
The reason why I say this is because we buy profits, not land. It is this mind set that separates a seasoned investor from a beginner. A seasoned investors knows his values. He understands the market intimately and is able to fairly accurately put a price on any individual block with speed. Having this skill, it is easy to look at a block and identify quickly whether the block is profitable just by knowing the asking price.
Subdividing land is not risky if you can do this and is very very profitable because it can be turned over more quickly than a house and land. The lower entry costs of land also make it an ideal choice for entry level investors.
Your due diligence should be conducted before you purchase and not afterwards. A quick trip to the city town planning department will give you all sorts of publicly available information about the block you intend to subdivide. The first thing you need to know is what the minimum allowable sizes a block of land may be in the zoning laws.
This will allow you to understand if the block can be split. For example in my area, the minimum is 450sqm, so the block would need to be at least 1000 or maybe more. The reason why is because on every block of land there are city easements that need to be left free and clear so utilities and such can be accessed. Also room for drive ways etc are needed so subdividing a block you need to allow for these requirements. Your local town planner can advise you on their local ordinances and they are a valuable source of information. If you intend to subdivide land regularly in your area, it would be wise to get to know these officials and communicate with them effectively. The ideal blocks are corner blocks. But the key is the zoning code.
By: Martin Thomson
About the Author:
Subdividing land is good, but there are simpler lucrative opportunities out there. If you would like to discover a verified list of Million Dollar Corporations offering you their products at 75% commission to you. Click either link to learn HOW you will begin compounding your capital towards your first Million Dollars. Click here to learn about the EasyCorporateMoney.com program
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Categories: Flipping Land Tags: Profits, Reason, subdividing land in texas, Town Planning