There are many benefits to investing in land. These include tax advantages, long-term capital gains, and the satisfaction of shaping a landscape. But perhaps the most rewarding aspect of this type of investment is a deeper sense of purpose and belonging to a place that goes beyond numbers on a balance sheet. Whether you’re nurturing a vineyard, preserving a forest, or sculpting an urban skyline, you are creating a physical legacy that matures over generations. It takes patience and due diligence, but the rewards can be profound.
Land offers unique opportunities for income generation, as you are not limited by a building code or zoning restrictions. It is also an excellent asset to have as part of a retirement strategy because it typically has a higher return on investment ROI than other real estate types.
You can invest in agricultural and farmland by purchasing a current operation through a sale-leaseback transaction, or you can purchase raw land and develop it yourself. The latter option is more risky and requires more work upfront, but it can yield an even higher cash yield if you choose the right location and plan for future development.
In addition to the potential for agricultural and recreational use, land can be developed for commercial, residential, or mixed-use purposes. It can even be used for renewable energy projects that contribute to a greener world and offer long-term income potential. Investing in raw land is also often more affordable than investing in buildings, which means you can get into the market with a relatively small down payment and still reap the benefits of owning your own property.
The long-term capital gains you experience on your Invest in Land with Confidence investments will depend on your location and the potential for future growth based on local market trends and population shifts. For example, that nondescript plot you purchased by the lake could become the site of a trendy resort in just a decade.
Diversification is another key benefit of land ownership, as it is a non-correlated asset that can protect you from losses in other markets. If stocks take a dive, for example, your land will remain unaffected and continue to increase in value.
Investing in raw land is not for the faint of heart, as it’s a marathon that requires long-term vision. But with careful research, planning, and patience, you can nurture a land legacy that will be here for generations to come. If you’re ready to start sculpting your own financial landscape, consider working with Advanta IRA to invest in unimproved land through a self-directed IRA. Contact us today to learn more about this exciting opportunity!