Why You Should Consider Land Investment

by News Guy on September 20, 2012

With the recent turbulence in the property investment markets it looks as though growth in the US property market is starting to revive.  Figures released in July show that the housing market in some States has risen by 25% compared with July 2011.

Land investment ideas

This type of investment can be approached in several different ways.  There are those investments that can provide a quick turnaround, there are those that can provide a sustainable income and still leave the capital investment intact and there are also investments that just look at the land itself without any property involved.

Land investment will not always provide cash flow and sometimes the land might have to be retained for a while and then divided into plots and sold as the market rises.  Alternatively an investor might just negotiate for the various rights associated with the land and reap the future yield from these rights.

Real estate

There are still many bargains to be had if one chooses to invest in real estate.  The recent round of foreclosures means that property can be bought very cheaply at auction and there are very many bargains to be found on the open market.  If someone is desperate to sell their property as a result of rising personal debt and insecurity, then the experienced real estate buyer will be able to buy the property at a bargain price

US houses for sale are advertised both overseas and at home so for those American investors who are interested in pursuing this line of business, this Autumn might be the ideal time to follow their dreams.  House prices in the US are still a lot more competitive than in other countries and with the constant stream of tourists to these shores it’s not surprising that many of them are buying condos in many states, including Florida.  Mortgage deals for investors can be favorable, for example a repayment mortgage on a cheap property can be fully repaid after five to ten years.  Currently US mortgage rates are at an all time low which is another positive factor for those looking to invest in this market.

Other options

With all the gloomy figures being published on a month on month basis from many government institutions, including the Fed, the housing market seems to be the only viable option for those investors who aren’t part of a major conglomerate but do want to see a relatively secure return on their life savings.  This type of speculation, and all investment is a type of speculation, should only be considered if the buyer can afford to not have to touch their capital sum for a while.  One of the strongest investments at the moment is the domestic buy to let market.  Most prudent investors will use the services of a property manager to ensure that the rent is paid and that the property is kept in good order and be able to rest assured that they are receiving a steady income without having to touch their capital.

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