Most people consider buying stocks or rental properties when looking to add more diversity to their financial assets. One under-the-radar investment that retirees should consider is buying land. As you get closer to retirement, there are several reasons why purchasing land is a sensible decision.
1. Land Values Increase Over Time
Land can be considered a relatively safe investment because of its long-term growth potential. Generally speaking, land values increase over time and can offer a positive return on investment. Whether you build on the property or keep it as is, land can be expected to appreciate in value.
2. Land Has Low Maintenance Costs
There’s not much maintenance involved when you invest in land. Compare this to owning rental properties, for instance. There’s no need to worry about HVAC problems, keeping up with repairs, or dealing with tenants. After purchase, there’s not much you have to do other than basic upkeep, like mowing the grass and keeping it clean.
3. Buying Land Is a Unique Diversification in Your Portfolio
A first-time land buyer can benefit from adding land to their investments as they get closer to retirement. Unfortunately, too many people haven’t been able to retire because of stock market volatility. Having a place to invest your money that is not directly influenced by day-to-day stock market fluctuations can be a great way to diversify your portfolio.
4. Less Competition for Owning Land
Most real estate investors specialize in mature properties such as single family homes, condominiums or commercial spaces.Investors are enamored with these assets, which drives the prices and makes market competition cutthroat. Owning land provides investors a unique edge, as many are unaware of the extended potential for returns. Instead, they search for fast profits and overlook the long-term potential that lies within it.
5. Lower Up-Front Expense
If you’re nearing retirement, or even if you aren’t, looking at lots for sale on which to build your future home is a wise move. While you may not be ready to tap into your retirement funds for your dream home’s construction, you might just have enough saved to purchase the land. Purchasing the lot ahead of time gets you one step closer without a major expense before you’re ready.
Buying land can be a great way to diversify your assets as you look toward retirement. The Reserve at Leonard Farms in Bristol, Tennessee, has land available in a gated community that is perfect as an investment or as the place you call home.
The added bonus to either scenario is that the land is located in a state that does not impose income taxes. Consider seeing the benefits of land ownership today. Contact us for more information!
