Last month, we posed the following question to our audience: What type of land investor are you? Our informal online survey revealed that 50.9% of those responding considered themselves to be long-term land investors. Land investment is referred to purchasing land where the desired goal is to earn income from the purchase of the property. Historically, buying and selling real estate, including land, has been a relatively rock-solid investment and a smart way to build long term wealth. Additionally, land can provide enjoyment for the owner, which doesn’t come with investment in stocks and bonds.
According to the August LANDTHINK Pulse results, the overwhelmingly popular answer to our survey question “What type of land investor are you?” was “long-term investor”, with 50.9% of respondents indicating that they considered themselves to be long-term investors when it comes to purchasing land. Coming in second, but not by a close margin, was 29.3%, who responded “one time buyer”. A scant 4.5% of land investors were developers. The results were not surprising. In recent years there has been a trend among investors toward physical assets, like farmland and timberland. Long-term investors understand the ups and downs that come with owning assets such as these and they don’t panic with inevitable short-term market fluctuations. Adopting a long-term mindset ultimately helps land investors reap increased earnings over time.
There are many types of land investors, as well as many types of land buying opportunities. As with any investment, there are advantages and disadvantages associated with purchasing property for investment, as well as risk. Buying land is a complex transaction with many considerations to mull over before closing the deal. Anyone considering a land investment should seek the guidance of licensed real estate agents, attorneys and tax accountants specializing in land sales. These professionals can help investors ensure the likelihood their end goal- earning income- is met.
Here’s a breakdown of the overall results:
- 50.9% said Long-term Investor (> 5 years)
- 29.3% said One-time Buyer
- 8.7% said Medium-term Investor (2-5years)
- 6.5 said Short-term Investor (< 2 years)
- 4.5% said Real Estate Developer
Thank you to everyone who participated and shared the Pulse with friends and connections in the land industry.
LANDTHINK is seeking a sponsor for the October LANDTHINK Pulse and months thereafter. Pulse sponsorships are offered on a first come first serve basis and are subject to certain limitations. If your business would be interested in sponsoring next month’s October Pulse question, please contact us soon.
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When financing land, what should be the buyer’s minimum cash down payment? Tell us what you think! Click here to answer the September Pulse question!
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