Investing in land can be confusing. While it is simple to understand what to do when you buy a property with a building already on it, it is more complex if there is nothing on the land. The main advantage of raw land is that it is very cheap. If you are looking for land to invest in, purchasing undeveloped property can be a good idea.
But once you own it, you need to consider how to make it earn money. Here are some of your potential options:
Put It to Agricultural Use
The simplest purpose that you can use the land for is to use it for agriculture purposes. If you have a backyard garden, then think of taking it to another level. With more space, you would be able to grow more crops. A good hobby farm can produce enough food for your family and more. The savings you can get from food costs alone can earn you back the cost of the land. But the extra crops that you sell also allow you to get actual cash for it.
Besides offering land for crops, your land can also be a great place for livestock. Whether it is chicken, pigs, or other domestic animals, you can potentially start earning money from animal husbandry. You’ll need to develop it a bit but the investment is minimal compared to other choices.
Develop It For Recreational Purposes
If you have a large flat space on your land, then you’ve got a potential use for it already: concert and event space. You can rent out an open field to event organizers, and they would be willing to do so if it is large enough to accommodate everyone. It would also help if your vacant lot is accessible.
There are other ways you can turn your vacant lot into a place for recreation. You could put some money into space and develop it a bit with the help of reliable event center builders. They can put up some structures like conservatories and the like to provide your venue with some features. For example, they might be able to help set-up a drive-in movie theater for you. A large projection screen and a driveway for guests wouldn’t cost much but can pay off a lot.
Build a Residential Building
The more traditional way to develop raw land is to build something on it. A residential building, as long as the zoning allows, can be very profitable. For example, if you build an apartment building, you can have rent from multiple tenants coming in. That can be a steady source of income. Additionally, there are several options for what sort of residence you can build. If you want short-term guests who pay promptly, then running a hostel or inn can be the way to go. For more long-term tenants, you can choose to build an actual house.
But this is easier said than done. Building a house or building for renting out can be very expensive. It depends on how big you want the building you want and what features you want to include. While it can be profitable, you need to be smart about building decisions.
Create a Commercial Space
The most profitable but expensive way to develop land is to turn it into a commercial space. Renting out to stores can be very profitable, especially if they are successful. Not all land is ideal for this though. You’ll want an accessible spot. If your land is away from urban areas, then you will likely be more successful with other developmental approaches.
But if you have no competition around and you are close enough to residential areas, you can build up a simple shopping arcade. Provide enough space and add a parking spot. You can then accept tenants that you think will attract people. For example, a fast-food joint is always profitable. A small convenience store can also be a good choice. The great thing about this if you are the first in the area, you can drive the development of the nearby land and raise your property values.
Any undeveloped land has potential. The right development on it can allow you to earn back your initial investment and more. You’ll need to be smart about how you develop the land and evaluate your possible choices. You also need to consider your financial resources so that you can develop the land properly. Build it up correctly and you will start earning money from your land in no time.