We have several reasons why every investor should invest in raw land. Never underrate the value appreciation of raw land, especially in a more populated area. A land near universities and colleges is a huge goldmine.
This blog explains the benefits of investing in raw land in Kenya. We usually provide hundreds of blog posts with tips and guides to help you invest wisely in the real estate sector. Subscribe to learn more about real estate investment.
Why Raw Land?
1. It's a finite resource
As you all know, raw land is a finite resource. Unlike stocks or bonds, there is a limited land supply on Earth, so it is a precious asset. This is also why land will always be valuable, and most of the time, it's usually scarce.
Every real estate investment starts from the land, making it even more valuable. As much as land is a limited resource, it will never be cheap. The prices keep on rising, despite inflation threats.
Raw land is a very stable investment. It is not subject to the same volatile market conditions as other investments, so it is an excellent way to diversify your portfolio.
Once you buy land, it will always be there, and you can let it grow in value while seated. You don't have to sell it at a lower cost. In addition, there is no fear of losing your investment overnight like it is with stocks and bonds.
3. Versatile asset
You can use the land for various purposes, such as agriculture, housing, or commercial development. The flexible nature of land makes it a good investment for beginners. As a beginner, you can choose to start small by buying land. Who knows, it might be your next big project.
However, you should always invest in land in the correct location. That is the only way you can earn good returns from your investments.
The good thing is you can buy a mining centre unknowingly, which will later earn you a lot of money. The land is usually a flexible asset because you can develop it into whatever you wish.
4. Appreciates over time
Land appreciation is a genuine phenomenon. Over time, land values tend to go up, so investing in raw land is an excellent way to build wealth.
However, land appreciation is not equal in all locations. It's usually high in developing areas and where there is a natural resource like minerals, precious stones, or water.
But regardless of area, land doesn't depreciate. The appreciation rate can be low, but it will never go down.
5. Easy to buy
Raw land is a great way to start real estate investing. It is relatively inexpensive and can be a very profitable investment.
When you compare raw land with readily built property, it's cheap. In addition, you can buy and build property in phases without using a mortgage loan.
Raw land is an excellent way to start real estate investing and can be a very profitable venture.
6. Rental /leasing
If you have land in an agricultural-friendly area, you can rent or lease to farming investors. If you have raw land near popular recreation areas, you can rent it out to campers and hikers, providing you with a steady stream of income.
The Risks of Raw Land Investment
It can sit idle for a long time
There is often little or no development on the land, so it can be difficult to resell or develop the land in the future.
In addition, unless its land is suitable for agriculture, you will have to wait till you get a suitable buyer. Otherwise, no one will be willing to settle on dry land.
In most cases, you'll find raw land in remote or rural areas, making it difficult to access and develop.
Raw land can be subject to several environmental risks, such as floods, fires, and earthquakes, which can make it challenging to develop or resell the land in the future.
The Bottom Line on Raw Land Investment
Raw land is one of the best investments an investor can make. It is a long-term investment that will continue to appreciate, providing a solid return on investment. In addition, raw land is a hedge against inflation, as the value of the land will increase along with the cost of living.
Like we said earlier, we provide helpful tips in our blog section. In addition, you can still list your raw land on our site for free. All you should do is subscribe for more tips on your investment.
Don't forget to comment below about your views on raw land investment in Kenya.
Frequently Asked Questions
Is raw land a good investment idea?
It depends on how fast you need to get your return on investment. If you just want to turn your liquid cash into an asset, it might be a good choice since you will give it time to appreciate in value. It will be better than keeping your money in the bank idle.
However, if you want to gain returns faster, you should consider other investment strategies like rental properties and properties for sale.
Why do people buy raw land?
Most people who buy raw land target land suitable for agriculture or commercial purposes. They buy it with hopes of developing it or reselling it at a profit.
What is the most significant benefit of investing in raw land?
The big benefit of raw land in an agricultural or commercial area is that it appreciates faster. It's also easy to earn returns on the land without developing it. That's why it's usually essential to buy land in a desirable location.