10 Reasons Why LAND is the BEST Future Proof Investment

hey luxers it's so great to have you back with us for today's video in which we'll be talking about something we know is one of your favorite topics how to invest and how to do it in a way that will give you great results well into the future if somebody asked you to name a great investment what would be the first thing you would think of would you pick a stock a commodity or perhaps crypto today we're looking at something that has a track record of being a lot more secure in the long term and with the potential for big profits if you're thinking property you'd be closer but still a bit short of the mark because today we're not looking at buildings themselves but what they're built on land it's something a lot of investors never take the time to look into but that's what we're looking into today with the 10 reasons land is the best time proof investment welcome to alux.com the place where future billionaires come to get inspired if you're not subscribed yet you're missing out number one it gains a value better than real estate we can already hear you saying but alux what's wrong with real estate like land that actually has buildings on it well sure real estate is far from a bad investment and it's great to have some in your portfolio but we have to add that land has a few big pluses that real estate can't match and the first one is that over time the value increases more let's look at a few numbers say back in 2010 you bought an apartment in the usa you started renting it out and putting the rent money into the bank the amount you've made since then would depend a lot on variables especially factoring in your maintenance costs tax and renovations but a return of five to six percent a year on your original investment is considered good and that would mean a return of 50 to 60 percent over 10 years let's add another 25 the increase in the u.s housing market over the same period and the value the property would have gone up by we end up with a 75 to 85 percent net return on investment remember it's a fairly optimistic forecast but it doesn't sound bad but what if you'd use the money to buy land and waited 10 years to sell it looking at the change in land prices over the same period you could have expected an increase in value somewhere between 80 percent to even over 150 percent especially if you invested in land in nevada the u.s state with the highest increases in land prices and that's just the amount the land increased by you don't even have to rent it over just 10 years land is already starting to beat out real estate but what if you do the same project over a longer period say 40 years well land's going to do even better the reason is simple over time buildings degrade they get into worse condition they need more maintenance until tearing them down and building something new becomes the best option but land just keeps on getting more valuable that makes it a great long-term investment and about as time-proof as you can get number two demand is going up and supply is staying still at this point maybe you're starting to ask why does the price of land go up in the first place you don't have to be an economics genius to figure this one out do you you just need to know a few basics like how much of something there is available supply and how many people want it demand and in the case of land it's easy to see how these play out the world's population is steadily going up by a little over one percent a year and it's probably going to keep on rising until around the year 2100 all the extra people in the world are going to need space to live work and recreate that's going to use up more land and demand for it is going to stay on the upswing for quite some time to come and in terms of supply well you can always build more stories onto a building but you can't build more land in other words the supply of land is staying more or less the same putting it all together rising demand and limited supply it only means one thing rising prices number three it's easier to predict than other asset classes so what makes land such a great long-term bet well when it comes to investing nothing is certain but let's just say that land is about as certain as you can get let's compare it to stocks now that technology is changing and becoming obsolete faster and faster it's harder than ever to say what's going to be making big waves in a few years time if you spotted amazon 20 years ago sure now you would be rolling in money and getting it on amazon 20 years ago would have been impressive enough but figuring out now what's going to be the next amazon if anything that looks even more difficult but if there's a one thing we can be sure isn't going to become obsolete that is land yes for sure if you'd invested in amazon or tesla you would have made a lot of money more than you would have with land but any stock comes with a big risk and land offers risks that are about as low as any investment but still come with great opportunities for profit number four it's as a low maintenance as you can get so we've just talked about how much land goes up in value and the beauty of it is if you own empty land you don't have to maintain it change it or do anything to it let's compare it with owning an apartment or house if you own an apartment and take rent from tenants there'll be all kinds of things you have to take care of like maintenance anytime something breaks that's your call what if you get rats or bugs or it's damp or a leak in the roof yep that's one more time effort money and sweat that you'll be putting into fixing it and you'll also have to hope that your tenants pay on time and don't trash the place while they're there but when it comes to vacant land with no buildings on it or as it's known in the business world raw land you don't need to do anything you can just sit back let the market do its work and watch the value of your land go up and at some point in time cash in and sell it either to someone who wants to develop it or to someone who knows its value is going to keep rising number five pick the right area and the profits could be huge just in case this is starting to sound too good to be true we hear you and yes things can go wrong when you're investing with land and yes you do need to do your homework first you need to look into things like what can the land be used for are there limitations or zoning restrictions on it which are going to stop it from going up in value like an area where no construction is allowed or is it on a mountain side that's impossible to build anything on or in a flood zone the good news is you can find answers to all of these questions pretty simply in most countries you can contact your local planning and zoning department and you'll also want to hire a land surveyor to check everything out if you really do your homework you might find areas the city is probably going to expand into in the next few years and that's going to be a hot property for developers and that's when land investors really hit the jackpot if you get the right combination of factors an area with no zoning restrictions a population that's getting bigger and a strong local economy you could be talking serious profits when you sell it a few years down the line number six agricultural land is a great investment too it's the same principle as before the world's population is getting bigger and bigger that means more mouths to feed and more farmland needed to produce the food in a lot of countries vacant lots in and around the cities have mostly been taken up which means that land near cities isn't an option for most investors but they can still invest in agricultural land this could be for farming crops pasture or for wooded areas for timber in the usa over the past 10 years prices for these types of land parcels have risen between 100 and 130 percent number seven you can make money from it before you sell it so you've got yourself a piece of prime land you want to sit on and wait for it to go up in value to wait for that payoff you're going to have to wait until you sell it to a developer right actually we've got some more good news there are ways landowners can make money even before they sell the land some of these need modifications and input others need hardly any or none on the higher maintenance end of the scale if you're in an area that draws in tourists you could turn it into a campground if it's near an urban area you can turn it into allotments for hobby gardeners and renting it out as farmland is a fairly low maintenance option if it's in an area where lots of people can see it like on a main road you could even put billboards on it and make money from the advertising space number eight low barriers to entry another problem with investing in real estate is it's expensive even with a mortgage you're usually talking about putting a big deposit on it and if you want to develop it so you can flip it that's going to push the cost up even more this is where vacant land is a big bonus you can get in on the land market for much lower sums sometimes as low as 1 000 on top of that taxes are a fraction of what they are for buildings even if you keep the land for years it also has less paperwork which means fewer lawyers fees than buying or selling property number nine less competition from other buyers it's a fact a lot of investors ignore raw land as an investment opportunity what does that mean yep less competition when it comes to buyers if you're looking to buy a house or an apartment and you found the perfect property to turn into an investment then chances are a lot of other people have spotted it too and it's likely that one of them is going to outbid you but when it comes to vacant land the great thing is there are far fewer people out there looking to invest so when you find the right piece of land there's a much better chance that your bid is going to be successful number 10 you can do the whole process online this one depends on where in the world you are but it is true if you invest in a house you're going to want to inspect it carefully and check for hidden problems and you probably wouldn't even think about doing it all online but with empty land there just isn't that much to inspect there are checks you have to make like ones we've already mentioned but you can do these online and in some countries like the usa savvy land investors can do the whole process with a few clicks of their mouse and a couple of phone calls everything from researching buying and later on selling it that's why land investors who find great opportunities in different parts of the country don't even need to spend money on airfares or time traveling around to visit them all they can make money from the land they invest in without even having been there that's how low maintenance and stress-free investing in land can be which brings us to the end day luxers and our question for you where in the world would you most like to invest in land and why tell us in the comments and the bonus for sticking with us until the end is investing in areas that will benefit from climate change climate change is becoming more of a reality and yes we know the ethics behind it are sketchy at best but whatever you think of the rights and wrongs it's a fact there will be people who will benefit from it and one of these groups is people investing in land as climate change impacts weather patterns some areas of land will become more valuable especially for farmland in temperate zones and for investors who can spot which areas of farmland are going to go up in value there will be big profits to be made we hope that you learned a lot from today's video alexers and if you did don't forget to like the video and subscribe to alax

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Keywords: Alux, Alux.com, Alux Youtube, fine living, land, land best investment, real estate, raw land, land development, real estate developer, investment opportunities, land investment, benefits of land, raw land vs real estate, getting started in investing, investing strategies, real estate crowfunding, land investing expert, tips to buy land, tips for real estate investing, tips for land investing, reits, land investing basics, land flipping, passive income, agricultural land

Id: PVkgRE5V5kE

Length: 11min 55sec (715 seconds)

Published: Sat Aug 22 2020