Over the past year, both low and high-income Americans have shown a declined interest in general stocks, according to a recent Gallup survey. Despite this, however, the popularity of property investments has not dwindled much. While investing in conventional real estate is commonplace among global investors, the potential of land is often overlooked. An astute investor, however, will be very familiar with the benefits of land investments, which include increased flexibility, possible tax exemptions, and the opportunity to avoid hefty maintenance costs.
Land can be developed as desired
When purchasing a house, apartment or commercial property, buyers often have very little flexibility with regards to the upgrades and changes they can make. When investing in a plot of land, however, the owner is presented with a blank canvas that can be developed in near-countless ways. As the investor, you can choose to be actively involved in the entire development, right from the initial design stages to the moment the final finishing touches are added to the completed structure. Apart from being convenient, investing in land with the purpose of developing it for own use can also save an investor a considerable amount of money, considering that U.S. homeowners spend in excess of $300 million every year on home renovations and repairs.
You could qualify for tax exemptions
There is a multitude of financial benefits, including tax exemptions, that you may qualify for when investing in a plot of land. While these benefits may differ considerably from one state to the next, it is definitely worth looking into, especially if you have a few options to consider. If you are looking to invest money and see Texas land for sale, for instance, you may want to move in quickly before someone else does. When you invest in land in Texas, you may qualify for a timber, wildlife or agricultural exemption, depending on what the land will be utilized for. On an annual basis, such exemptions can reduce your property taxes by thousands of dollars, making it an investment option in high-demand.
Avoid costly maintenance
Apart from possibly qualifying for tax exemptions, investing in undeveloped land can also eliminate the need for costly maintenance. When you invest in a house or apartment, you will be required to pay for regular maintenance of the property, whether you live in it yourself or not. When you invest in undeveloped land, however, upkeep is typically minimal until such a time that development commences. Once the development is complete, everything from the plumbing to electrical systems – and everything in between – will have to remain well-maintained at all times.
Land investments can prove to be very beneficial. Even if you plan to develop the land for private use, you may end up saving a lot of money when compared to traditional real estate investments.