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Many people choose to rent until they feel comfortable buying a home. Owning land before you’re ready to build your dream home can have its perks, though. Find the best parcel of land you can, and you’ll reap these benefits and more as a landowner. Whether you plan to use your land or let its value appreciate, you’ll always know that land is a worthwhile investment.
1. Long-Term Asset
Land is the perfect long-term asset that will continue to appreciate over time. Owning land is a worthwhile investment and can make a great difference for your household financially, no matter what you choose to do with it. Land will always be in short supply, since there’s a limited amount of it. With limited land come other limited resources, like starter homes being around 10% of the housing market. When you have land, you have power — and might get a great ROI depending on when or if you choose to sell it.
2. Inexpensive Option
Compared to buying a home, which then has to be kept up and maintained, whether you’re living in it or using it for another purpose. Land doesn’t need to be maintained to the same level as a house. You don’t need to pay a mortgage on it, and you have lower property taxes. In April 2022, the average price people paid for a house was just over $450,000. Land prices are more inexpensive, and because you’ll already own the land, it’ll be easier to do whatever you want with it in the future.
3. Tax Deductions
You can often deduct the maintenance of a property from your taxes at the end of each year. Also, you won’t need to pay income tax on the profit you make if you eventually sell your land. It’s a great investment, especially if you have big plans for it, like establishing your own tiny home community or putting a solar or wind farm on it. Make sure to keep the money you saved on your taxes and invest it back into your property.
4. Finite Resource
Once all the land is gone, that’s it. Owning land can help you ensure you have a space of your own to do whatever you want. Whether you lease it out or someday build your dream home on it, owning land ensures you have a place that truly belongs to you. The average lifetime of a building is just over 60 years, but land lives on forever. You can demolish and rebuild buildings, but the land underneath them will remain valuable — and you can’t make more of it.
5. Flexibility of Use
You don’t have to use your land to build a house. You can use it for storage purposes, or you can start your own farm. You can create rental housing or make it into a campsite for families. Owning land is great because you can do almost anything you want with your parcel. Even if you don’t ever develop anything on the land, getting it to sell it later is still a good investment opportunity.
Look Into Owning Land Today
Owning land is perfect for just about anybody. As long as you pick viable land that could be used for something in the future, even if you plan to use it only for storing items or vehicles, you’ll build your equity and can use it as you see fit. There’s little risk in land, as its value will only continue to appreciate over time. Find some land that suits your needs and go after it — you never know where the future could lead you.