Land investments fall under a subdivision of the real estate market. It’s easy to assume that real estate only relates to buildings, but land is also included. Furthermore, when you think about land investments, you assume that all of them are the same. Aren’t you just buying a stretch of land?
While technically true, there are different types of land investments out there – and some are more valuable than others. Today, we’ll run through three different types you should think about investing in:
No, not the music producer or the shoe manufacturer! Timberland refers to land that can produce timber, and it is usually found in forests. Individuals can purchase sections of timberland to then use to make money from the timber. You’ll need to work with management companies like Future Forest Consulting to get the most out of your land investment. But, when done correctly, you can constantly make money by farming timber, replanting trees, and selling your resources to the highest buyers. Think about how often timber is used throughout the world in so many manufacturing processes! One of your biggest markets will be construction, where many homes are still built from timber frames.
Farmland refers to any type of agricultural land that’s used for farming. This includes fields to grow crops, areas of land that are dedicated to farm animals, and so on. You could also possibly include vineyards in this category. Some may debate if this counts as farmland, but you are basically planting things and farming grapes to make wine. Regardless, this is a smart land investment as farms present many money-making opportunities. You could raise livestock and sell them to other breeders. You could grow crops and sell them to big food companies or local grocery stores. You can even create your own products via your land, package them up, and sell them online or in shops around the nation.
The final option is to purchase land that’s used for commercial developments. Typically, you’ll find this type of land quite close to cities and urban areas. It will be within good transport links, meaning companies could easily drive there. The idea is simple; purchase the land and then build commercial developments. You can do this yourself or sell the rights to construction companies. Doing it yourself is smarter because you then have commercial buildings on your land, which you can rent out or sell to businesses. Build a few warehouse units on your land and you suddenly have multiple assets to rent to local companies.
In conclusion, land investments are extremely profitable when done correctly. There are so many other types of land that we haven’t had time to cover here. Or, we’ve chosen not to cover them because they aren’t that profitable. The three mentioned above are all designed to help you make as much money as possible. The first two are great if you really want to cultivate your land and play an active role in making money. Finally, if you’d rather buy something to turn into a hands-off investment, commercial land developments are for you.