Vacant Commercial Land: A Worthwhile Investment
- By Acquisition Consultants
- March 27, 2020
In the world of commercial property investment, vacant land is the most overlooked and misunderstood form of real estate. Common vacant land misconceptions, such as it being complex and non-income producing, have led some investors to underestimate its potential. However, if handled correctly, vacant land can be a very lucrative investment and, if ground-leased, produce a very low risk reliable income stream.
Benefits of Investing in Vacant Commercial Land
Here are some ways vacant commercial land can be a profitable and stress-free investment.
· There is a scarcity of land. In states like Florida this aspect is significant.
· Vacant land is a “hands-off” investment which does not involve all the problems that can arise when dealing with tenants.
· With vacant land you do not need to work on the property like you would with commercial buildings that require regular maintenance and renovations.
· Large, generationally owned land is typically for sale by highly motivated landowners. Therefore, you can purchase valuable large acreage at relatively fair prices.
· The land investment sector has less competition. Many real estate investors focus on retail buildings, professional offices, and apartments.
· Land investments are typically purchased in cash without loans, as loans expose investments to additional risk.
· Whereas a physical building will break and depreciate, land, as a general rule, will appreciate. Unlike buildings, which gradually drop in price with deferred maintenance, vacant land remains in the original state in which you bought it. This allows vacant land to enjoy better long-term value appreciation compared to developed properties.
Vacant Commercial Land Investment Considerations
If you are considering taking the big step of investing in vacant commercial land in Orlando, here is what you will first need to consider before selecting land to purchase.
· Population growth in the area
· Type of development occurring in the area
· New employment in the area
· The property’s price
· The property’s taxes
· AG exemption available?
· Who currently owns the property?
· When the property was purchased by the previous owner
· Information related to the property’s deed and title
Widen Your Vacant Commercial Land Search With an Orlando Broker
When searching for something, it is always advisable to exhaust your resources. The same applies to finding investment properties such as vacant commercial land in Orlando. When searching for
commercial land, do not stop with using online property portals and ads. Get in the car and search. Also relying on an experienced and connected commercial real estate broker will help you find valuable Central Florida investment leads that would otherwise go unnoticed.
The commercial real estate brokers at Acquisition Consultants are equipped to help you find and secure the land investment you desire at a good price. More importantly, we will make the process of transferring the property as seamless as possible. For more information about our services or to get in touch with one of our experts, contact us today.