Investing in real estate is one of the surest ways to preserve capital and make a profit. Such investments are among the least risky. You can invest your money not only in the purchase of apartments, rooms, houses, but also in the purchase of land within the city or outside it.
Buying land as an investment allows you not only to save money, but also to receive additional income, the amount of which depends on the method of investment and the characteristics of the purchased land.
Investing in land is profitable:
Like any other type of investment, investing in land can be active, passive and mixed.
Passive real estate investments involve investing money in land and then selling the land when the market value of the asset rises. Passive land investments also include buying land to rent it out. It is a virtually risk-free way of investing your money, but the profit may be less than that gained from active investing.
Active investment usually includes changing the intended use of the land, its modernization, the construction of residential or commercial real estate, and other activities designed to increase the resulting profits.
A blended investment strategy is a combination of passive and active investment techniques. This method can be used by beginner investors who do not have enough capital for active investments.
A sample plan of action of an investor following a mixed strategy:
Land for investment will be profitable only if they are liquid. When choosing an investment asset you should pay attention to the following factors:
There are several ways to invest in land. The most popular are:
Investment in land, with the right approach to the choice of the object, is a risk-free investment. The crisis is the most favorable time to buy land: it is during the recession that real estate prices traditionally go down. Even if there is no significant decrease of land prices, it is profitable to buy land: its value is increasing steadily. Investments in land are much more profitable than a bank deposit since the increase in real estate prices "outpaces" the inflation rate.
Economic crises end sooner or later; this was shown by the growth of the land market in Europe after the global financial crisis in 2008.
Coronavirus pandemic in 2020 - no reason to postpone the purchase of land for the sale of the plot later, and to build: during the time of self-isolation in Spain has increased demand for private houses.
Thus, land - the most reliable object of investment in real estate, which is not afraid of natural disasters, economic crises and loss of liquidity. The land market in Spain - one of the most stable, the cost per hundred square meters continues to grow steadily.