While buying to build could be more expensive than buying a house, vacant land for sale could be an excellent long term investment. Vacant land, especially somewhere close to the sea, continues to appreciate in value, without you having to put any money into it. If you buy a house as an investment, you will have the constant responsibility of maintenance. And if you are renting out, it will also involve some administration. With vacant land, there is no maintenance responsibility, and no administration, except if you decide to sell again. As vacant land for sale will be cheaper than a building, you might be able to do more with your money, and possibly diversify your property portfolio by buying two pieces of land. Apart from property rates, the land will cost you nothing over the years to come. Yet it will continue to increase in value. Buying property as a long term investment means you will have to wait for ten to twenty years before looking at selling the property – at which stage the property will more than likely have doubled in value. Buying two pieces of land by the sea, opens up some other options for you, especially if you buy in a coastal town where you would like to retire at a later stage. Coastal towns tend to develop quickly, and in ten years’ time new developments could have mushroomed in places where you would never have imagined. Owning two properties will then give you the luxury of choosing which property now better suits your needs in terms of location. You could then sell the other property and use the money generated to fund the building of your retirement house. Also remember that diversifying your property portfolio, in other words, buying more than one property, possibly including vacant land for sale, gives you more financial security. Should a certain area where you own property go down, you are still likely to have another property in a high value area.
Global property investments during COVID-19
6 tips for the first-time investor
1. Go for capital growth This is the most important consideration when buying an investment property. Capital growth will increase your equity or “net worth” more quickly than home loan repayments alone. Research annual median ...
Property remains a sound investment
Written by Adrian Goslett, CEO of RE/MAX of Southern Africa, re-published with the kind permission of Moneyweb Property remains a viable asset class in which to invest and still forms one of the most important investment ...