Why Buy Land?

February 6, 2011 by admin · 2 Comments 

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Being a real estate investor who specializes in buying and selling land, I often get the question “why buy Land?” It is a legitimate question. of course, to really make a serious attempt at answering that question, one would need to know what type of land we are talking about. Are we talking about commercial land? Farm Land? Hunting Land? Residential Land? Industrial land?Guadalupe prairie e1297027183186 Why Buy Land?

For each of these categories, there would be a different set of answers to the the question. My focus is primarily vacant land of the residential or recreational variety, in parcels smaller than 100 acres.  In this niche, I understand pretty well why people buy land.

Land is an investment. When we are addressing the “why buy land” question, this is probably the first answer that would come to my mind. Buying land is a way to build wealth, and it is a reasonably stable commodity that will definitely hold value in the future. Unlike investing in the stock market, the underlying commodity (the land) will always have value. Vacant land may go up or down in value, but unlike a corporation, land cannot just evaporate into non-existence. One exception to this might be some cliff-side properties which overlook the ocean, but for the most part, the land is an extremely enduring commodity.

By listening to the people who come to me seeking to buy land, I have learned some of the answers to the “why buy land” question. Every person’s reason seems to be a little different, but generally the reason people want to buy land is closely related to the way they intend to use the land. Some people want rugged, untouched land so that they can interact with nature, whether it be for bird watching or big game hunting. Some people just want a place to enjoy motor sports, and for them, the rougher the better. Some want land that was occupied as residential property, but has now been abandoned. These people may have plans to dig for antique bottles or other historical artifacts.  Some people want nice, flat land on which to build a dream home. They always ask about things like the view, access to utilities, and amenities in the area. In time, you can almost learn to guess how they intend to use the land by the questions that come up first.

Of course, there are endless varieties of ways these motivations can be combined. There are as many reasons to buy land as there are people on the planet. Generally, I find that they fall into three categories; young people who want to use the land now for family recreation, people nearing retirement who want to own a place to settle down once they leave the rat race, and speculators, who want to buy land strictly for investment purposes.

My friend and mentor, Jack Bosch, has a humorous way to answer the question “why buy land?” He says simply that this is a real estate investment which has no “Toilets, Tenants, or Termites.” Another friend, Andy, is a father with three children. He confided in me that he and his wife Traci, who has a family dentistry practice in Summerville, SC, have always looked forward to owning a piece of land where they can go camping with their family. I spoke to a fellow in Texas, who was ecstatic about the thought of a property with a large wash running through it, because it offered a promising place to dig for fossils, arrowheads, or other artifacts.

Suffice it to say that the answers to the “why buy land” question are many. Land is a great investment, and owning land means something different to each individual. One thing is certain; owning land has been seen as the foundation of the American Dream since before this country gained its independence. The “why buy land” question will likely endure, but not longer than the rush to own land. Have you found your dream property yet? If not, I invite you to join our buyers list, so that you will be among the first to hear of great new properties as they come available. Please visit www.buy-wholesale-land.com.



2 Responses to “Why Buy Land?”
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