While it’s natural to consider residential rentals when building your real estate portfolio, you may want to take a page from the book of savvy investors. Beginner investors are often attracted to investing in land because of the lower outlay of funds for entry into the market. However, whether you are a beginner or a seasoned expert, you should be aware that land prices rose nearly 7 percent in 2021, the second-highest increase, trailing just behind single-family rental properties. As a result, land sales surpassed other commercial investment types with a 6 percent increase in 2021, with residential land sales accounting for 4 percent of residential real estate sales.
If you should find yourself wondering what these experienced real estate investors know about investing in land that makes it so attractive, read on as we explore five reasons you should add land to your Utah real estate portfolio. This article is for informational purposes, not financial or legal advice.
Supply and Demand
We recommend adding land to your Utah real estate portfolio because land is a limited resource, and the fundamental concept of supply and demand is at play. Professional buyers like those at Utahhomes.biz constantly interact and are dedicated to keeping their fingers on the pulse of the Utah real estate market, from national trends to local zoning changes or other factors that help them recognize areas with growth potential to make the most of your investment dollar. The professional buyers at Utahhomes.biz can help you find the perfect piece of land to add the highest returns to your real estate portfolio.
Low Competiton, Low Stress
Among the reasons you should add land to your Utah real estate portfolio is the lack of competition, increasing your odds for a better deal at the negotiating table. In addition, emotional attachment to a property can be a stumbling block with residential property. However, it’s not typically a part of the negotiations for land; professional buyers like those at Utahhomes.biz are expert negotiators who can work with people from all walks of life to avoid emotional outbursts derailing negotiations. As a result, the professional buyers at Utahhomes.biz can help you get a great deal on the land you add to your real estate portfolio.
The ease of maintaining the land is another reason you should add land to your Utah real estate portfolio. Other than property taxes or possibly scheduling routing mowing services, there is typically little to do to hold land. Professional buyers like those at Utahhomes.biz can help you handle any of your property maintenance needs with their vast connections in the real estate industry. In addition, the professional buyers at Utahhomes.biz help save valuable time and decrease the expenses of maintaining your real estate portfolio through the skills of their full-service in-house team of the most highly regarded industry specialists in Utah, from attorneys to the closing table, along with our excellent property management team.
Proven Long Term Profitability
Another reason you should add land to your Utah real estate portfolio is the proven long-term profitability of this investment sector. Professional buyers like those at Utahhomes.biz understand the keys to the success of land investments and can help guide you as you learn the ropes. In addition, the professional buyers at Utahhomes.biz will help you perform due diligence and run the numbers to ensure you are adding the right property to your real estate portfolio.
Last but not least, diversity is a reason you should add land to your Utah real estate portfolio. The reasons to diversify are twofold: to protect your holdings from economic influences or other factors that may cause a downturn in one sector and to increase the odds your portfolio will grow in value. Your imagination is the limit of the type of land you add to your real estate portfolio and how you profit from the land. Professional buyers like those at Utahhomes.biz understand the risks and benefits of multiple options when buying land. The professional buyers at Utahhomes.biz will guide you as you explore different types of land for investments, from commercial use to residential, industrial or agricultural.
Talk to the professional buyers at Utahhomes.biz and find out why you should add land to your Utah real estate portfolio. Let the pros at Utahhomes.biz help you find the perfect property to fit your budget, from beginning investors to real estate moguls. The professional buyers at Utahhomes.biz can help you find the perfect piece of land or ask about our current inventory of the best investment properties available in Utah. The professional buyers at Utahhomes.biz bring a team with an investors mindset to save time and make the highest possible profits by helping you with every phase of maintaining a healthy and well-balanced Utah real estate portfolio. Call Utahhomes.biz at (801) 820-0049.