Investing in Land - Assuring a Profit

Everywhere you look someone is saying or writing that land is protected from a declining economy and that it is easy to become a developer, that tax benefits are afforded to land owners and you can't lose money in land. Nothing could be further from the truth. More money is lost in land than other type of real estate investment. Land is raw material that developers use to make building sites, farmers use to grow crops, and people use for recreation. Seldom will raw land pay for itself. In order for land to have any value other than holding the earth together is demand. The lowest level of land use is recreational. Agricultural applications produce very low returns to investors. The highest and best uses include improving the land with building improvements that have a demand for end users or tenants. In today's raw land environment developers (generally) are not buying land to develop, farmers have limited lending resources and are waiting for prices to drop before buying to assure a reasonable return on investment and labor.

In order to experience any level of success in purchasing land it will be necessary to understand what it means to leverage and how to be patient. Leverage in essence means that the less you put down at the time of purchase means the greater percentage return on cash invested when the property sells. The only problem is that with leverage comes high monthly payments with relatively no to low income on the investment. Every dollar spent in holding the investment drives the ultimate rate of return down. If you are leveraging then every day you own the investment you are losing investment return. If you purchase land with $1000 down and sell it a day later for simply $1000 more than you paid for it the return is 100% on cash invested. In an up market the dynamic changes and profits are possible because of the demand curve. Holding land in an upswing market can be profitable but still requires care in setting the purchase up correctly. Land is a complicated investment and be careful of anyone who tells you different. Developing land is even more complicated with banks becoming involved, city and county planners, neighbors, buyers, real estate markets, and time. Time can kill almost any project. You buy land today in a thriving market and it is entirely possible that by the time you have finished the development the real estate market has dried up, just like the 2006 market leaving thousands of unpurchased lots in the market.

A philosopher once wrote, "Patience is a virtue" and in land buying patience is truly a virtue that will assist in making the right buy. A veteran land buyer will wait it out and when the time is right will make offer that assures low risk and an opportunity to make a profit. Land buying should be all about self preservation. What land sold for yesterday has nothing to do with what you should pay for land today. What you pay should have a profit built into it, period. Have a well researched plan, a profit motive and strong finances. Land is illiquid and not suited for a quick flip. If you are considering land as an investment hire a specialist with expertise in land dealings, do your research, give yourself plenty of time to perform your due diligence and choose the investment well.

Douglas Ferguson has been a successful land broker for over 17 years in California and Idaho and at present is a Designated Broker with Ferguson, Beal & Associates in Middleton, Idaho. Mr. Ferguson is an Accredited Land Consultant and a Certified Land Consultant.

Currently, Mr. Ferguson serves as President of the American Land Institute, Member of the World Organization Land Federation and teaches continuing education in matters of land brokerage. http://www.douglasferguson.net

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

6 Things That Affect Land Values

There are many factors which will influence and affect land values and these factors may fluctuate from time to time. For anyone who is thinking about land investment it is very important that you know what these factors are and how they may affect land values. You will have an idea of what the land is presently valued and what the potential future value is likely to be.

The keyword here is future and someone who is able to speculate well what the prices of the land will be in future will always be on the gainers side. Here are 6 things that affect land values:

Scarcity

The basic principles here remains the same, that something which is tradable and is available in plenty have lesser value than something which is available in less volume. This factor is very significant and for e.g. we can see that the prices in the prime locations of any city, town or just any region is always higher than prices in the suburbs. This is because the prime locations has much more facilities and amenities which are available and due to which many people want to move over there and set up their business or buy a home there. This increases the demand where as the prices in the suburbs and outskirts are low because land is scarce in the cities and the opportunities are less and lifestyle too is not as good as towns. Here if you are able to buy land that is scarce at a reasonable price you will be able to make a profit for selling later at a higher price.

Arability

There are many land areas which are very fertile and cultivable. Places which are fertile and are cultivable are valued very high than non fertile areas.. If you purchase fertile land, you can easily sell it in the future as arable land is always in demand especially for agriculture. Due to this great demand for arable land the price that can be had is usually good.

Zoning Issues

There are local authorities that will place certain restriction on the kind of development that can be done on the land. Certain areas are zoned for certain kinds of development and amenities. Every land owner must apply for permission from the authorities to do any kind of development on any land. Permission is granted or denied based on zoning laws and other considerations and these all will affect the land price.

Development

The land value is also greatly affected by the kinds of development that takes place on it. If a very successful business is developed on it then you can include it in the overall value of the land. You can also choose to sell off the business while still retaining the property. This can help in earn profit from two sources. Thus, profit is coming from selling the business for a good profit and also a regular fixed income from the use of the land by the new business owner.

Taxes

The land value is also very much dependent on the area it is located in and the taxes that are attached to it. If the land tax is considerably high, then it might be a very god reason for the potential buyer to make another choice. Different states have different tax rates attached to land and depending on the type of land there may be a different tax attached. Also the size of the land will affect the amount of tax paid. Thus the larger the land the more tax will be paid and vice versa. Also the land to be invested in may have tax arrears that must be paid up before any transfer of title can occur.

Security

The safety of the area in which the land as located, is an important factor in determining land value. If the area is one that is crime riddled then the value will be lower. The safer the area the land is located in, the more likely that the land investment can produce positive returns over the long term.

When making a land investment these factors that affect land values are to be seriously considered and steps taken to reduce or eliminate their effects.

For Discounted Land For Sale, Visit Discount Land For Sale.com. List your land for free or search through our discounted land for sale!

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Why is There Interest in Buying Land?

Many years ago I went to auto auction with my local dealer. There was a sea of cars as far as the eye could see. So which one do I choose? Before I arrived, I looked at my budget, determined my family's needs and narrowed my choice to one mini van make/model. When I arrived I could have been overwhelmed by the shear volume of vehicles but I wasn't as I already knew what I was looking for. Once there, I popped open a few hoods and after some searching I finally decided on my purchase. The process to make a purchase decision took much time and energy - but it was worth it. After a month of gathering information I arrived at the auction ready to pull the trigger to buy. I enjoyed that minivan for years. I am still grinning about that car.

When it comes to land, many people are kicking the tires. There is an enormous amount of land can be purchased. So it can be overwhelming where to start. Many are at stage where they are doing their research and narrowing down where, when, and for how much they are going to purchase land. Some will go to a land professional for help. But many are going to do all the investigative work on their own. So what are the key types of land investors are looking for?

Retirement - We all have hopes and dreams. One dream for many is to retire. But where? The National Association of Realtors conducted a poll and found that nearly 60% of Baby Boomers hope to move to a rural setting when they retire. There are nearly 80 million Baby Boomers - this means that almost 48 million people dream about moving to the country. I bet you have met some of these people or maybe this is you.

What does that mean to those us who are land professionals? Get ready to supply Boomers with land parcels. What type of land parcels are they looking for? Boomers are buying as small as a half acre to hundreds of acres. It is time for those who represent land to get ready for this influx of activity. Right now some are at your doorstep determining whether you are the person to work with.

I see myself as a supplier of hopes and dreams. Many will buy land for retirement but most will never move to the country, but at least they will fulfill a part of their dream. Wouldn't you agree dreams drive major purchasing decisions?

Investment - It is an understatement that this has been a challenging year for any increase in value in your investments. As we know the stock market is mired in much uncertainty. Where are investors going to turn to rebuild their portfolios? Some investors will leave the traditional investment grid and scour for low risk hard assets such as land and gold to invest in.

Recreational Use - Some investors will simply want to enjoy their "own slice of heaven" by buying land that they can either hunt, fish, drive their ATV, etc. They are buying not only to recreate but also for investment.

Many internet land websites have reported from a 42% to 500% increase in visitor traffic. What does that mean to those of us who are land professionals? Investors are starting to do their research to determine where to invest to get the best value for their money. But they are not ready to pull the trigger as yet because investing in land is a new idea. Once they get comfortable, we are going to see a wave of land purchases that are going to be mind boggling. Is your business prepared to service this demand?

What type of land are investors searching for? Hunting land, recreational land, retirement homesite, farmland, timberland, hobby farm, and waterfront lots just to name a few. There is going to be an amazing convergence on not just one land type but on different types of land all at the same time. That is why the market will be hot and grow rapidly in the coming years.

Why invest in land? Historically, land has proven to be a safe investment even during times of market volatility. Now, investors are reevaluating their investment strategies and are looking for something they can touch and feel. They also feel they are in more control of the results of their investment compared to the ups and downs of the stock market.

There are many investigating the potential benefits of land investing and some will feel that investing in land can prove to be secure and lucrative. Also investing in land can provide an alternative to fulfill some of their investment goals that are outside the stock market.

"Ninety percent of all millionaires become so through owning real estate." - Andrew Carnegie

Many millionaires will emerge in the next few years because of vacant land.

Learn how to develop a competitive edge as a real estate investor by applying the principles Russell Ward writes about in his Home Study Course, Vacant Land Guide - How to Buy Vacant Land at Wholesale Prices. The turn-key program teaches how to make $5K to $10K per month quick turning small parcels of land and $50K to $100K per deal on larger tracts of land in just 10-15 hours per week!

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

How to Make Money on a Land Investment

Making money through investment in land can be a very healthy and almost sure profit earning venture. There are so many ways one can do it but only if you know how to do it properly. There are so many kinds of businesses one can start on his/her own land which can be helpful to them commercially as well as personally.

There are many land investors who are farmers and cultivators who used their land to harvest many kinds of food and raw products which are used locally in the market and personally as well. These products can be exported abroad as well and can be profitable enough if sold in the right markets. This local production of crops is beneficial as there is an export option as well as a local selling option. Agricultural land can also be leased for agricultural purposes. You can lease to a farmer or an entity that is involved in farming. The market for farm lands is growing as the demand for food increases.

One of the possible ways to make money involves growing hardwood timber as the supplies of hardwood are decreasing. Because of this the price of hardwood timber is increasing. If you choose to plant hardwood trees you will be reforesting and making a profit to boot!

One of the ways you can make money in land investing is to buy land at a reasonable cost and hold it until its value increases to a level where you will want to sell. You can also make money on the land by holding on to it and getting yourself a tenant. This tenant can earn you enough money to take care of things like the taxes associated with the land from the rent they pay you.

You can also choose to build on the land. It is a profitable business to build houses, apartments, and commercial buildings on the land and rent them out or sell them once they are completed. With the buoyancy in the real estate market it will not be too difficult to find clients to rent or sell to. Once your rental rates are reasonable you will make good money. If you choose to sell you may have to hold on to the building depending on what is happening in the marketplace.

When you borrow money to invest in land and make your mortgage payments the equity in the land grows. Once your equity grows then so does your net worth. With this net worth you have the option of borrowing more money to invest in other properties.

If you have invested in, or are thinking about investing in commercial or residential land you can do some capital improvements to help earn you some money. By simply adding certain features such as a roads or connections for utilities you can greatly improve the attractiveness of the land to potential buyers and be able to ask for more money when you decide to sell your investment. You can also make money leasing the land to developers for a period of years.

If a good amount of investment land is available then a person can rotate his money by purchasing and selling it out within the intervals of a few years as the lands prices keeps on increasing every year. A person can do construction and promotion of a building on the land which is available and sell the flats outright or give it on rent, whichever seems to be more beneficial to the person according to the area as well as the local market trend.

In some states when land is invested in there are certain tax breaks that become available to the investor. This is so if the land is used for certain types of purposes. Thus you can get tax deductions and other types of government tax benefits. This will help to increase the land equity.

If your land has any unique or interesting flora and fauna you can turn it into a sightseeing location and have visitors pay to explore the property. The same can be said for land with animals and birds on it.

There are many other ways that a land investor can make money from his investment. The key is to choose one that is in line with what your plans are for the land.

For Discounted Land For Sale, Visit Discount Land For Sale.com. List your land for free or search through our discounted land for sale!

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

How to Avoid Buying Waste Land

Our miraculous world has its beauty created and destroyed by people. Land is capricious. It is abundant and plentiful. There are veiled tragedies of waste land produced by human activities upon economic marvels. The earth is being polluted, depleted and exploited. This is progressively enlarging the presence of waste land.

Waste Land

A collection of poems termed waste land was published in the past by T.S Eliot. In its broader sense it can be defined as land which is unfertile, polluted, containing hazardous waste and for some people land which is stony is also simply just waste land. The waste land is land which is dangerous to human health and as well inappropriate to perform economic activities. The desert can be categorized as waste although it is beautiful; surviving on its plateau is tremendously suffering.

Land which should not be purchased

Land near factories

The land which is situated near factories can become a waste. This idea can seem to be theoretical but please cast an eye on China. People are breathing fumes exhausted from factories. The absence of pure air in heavily industrialized regions is a reality. A survey was carried out in the past and it was identified that a village in the southern province of China namely, Guangdong was heavily polluted. The factories in the region recycled waste such as plastic and other waste toxicity. The industries can be considered harmful to the environment and the nearby land can become useless.

Dumping areas

Every country has its dumping area. The dumping area is often quite far outside cities. However, dumping areas can usually be artificially created by people in the surrounding. People simple begin to dump their garbage and the location becomes a dumping area. There exist laws that prohibit these activities but the rule of the law does not always prevail. Wastes that are dumped are usually characterized by ignitibility (flammable), toxicity (contaminating diseases), reactivity (change form and create e.g. gas) and corrosiveness (acid). People who have accidentally purchased land near these locations will in the long-run regret their investment. They can suffer from suffocation and other health problems.

Unfertile land

Buying unfertile land is a bad investment. There are generally two reasons why its will be an unwise outlay. First the land is inappropriate to plant any type of green plants. Secondly in areas where there are few green plants, the air is often very dry. The climate conditions are unfavorable for living. Additionally, if the land is stony then there will be few prospects in the near future to resell the land. The fertility of land is a prime factor that must be analyzed prior to a deal.

People must avoid investing in waste land. The speculation on land should be done wisely. It is hard to sell waste land once it has been purchased. Its value will hardly appreciate and it will be detrimental for you to settle down on the land. Avoid buying waste land by focusing on the surrounding environment.

For Discounted Land For Sale, Visit Discount Land For Sale.com. List your land for free or search through our discounted land for sale!

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Secure Your Retirement With Raw Land Investments

Whether your retirement is many years away or just around the corner, you might be wondering how you can invest now to help secure financial freedom for retirement. Stocks can be risky, and many savings accounts and bonds render very little interest unless you can save a bulk of money over a period of 15 years or more. But one type of retirement investing you might want to consider is raw land investments.

Investing in raw land is the act of buying land for the purposes of development and then re-selling it later for profit. Some investors buy raw land for long-term investments while others desire to make a quick turn-around profit with the land they purchase. Either way, buying it can possibly help you retire rich if you invest wisely.

Most people aren't familiar with raw land development investments, in part because their fund managers and financial advisors don't offer them to their clients (because they don't earn a commission on them). The fact is, however, that these investments have been favorites of the very rich for generations! Why?

Because raw land developments are among the most highly profitable and secure investments an investor can make. In fact, a professional development project, on average, will increase the value of raw land by 300-500% and it can be even greater.

What is Raw Land?

Raw land is basically undeveloped land with no prior landscaping, water/sewer, power, phone, or other developments. Raw land typically must be cleared and/or leveled for purposes of building or other uses. This type of land can be purchased and developed for various purposes, including building homes, apartments, hotels, or businesses, recreational parks, or even for farming. When buying, considerations must be made about its location and access to the basic needful services, roads, water availability, clean air, electricity, sewage disposal and trash removal.

Diversify Your Retirement Investments

Buying raw land enables you to diversify your retirement investing efforts. You might own stocks and bonds, have a reliable savings account at a local bank or credit union, and maybe even have a substantial dollar amount in an IRA or 401K plan; however, owning raw land that can be developed and resold for profit gives you a bit of portfolio diversification in your investing.

The land itself is a commodity that provides asset security, meaning it can be turned into cash at any time to meet other financial needs. And though land value can go up or down with the real estate market, it always has some value. Portfolio diversification gives you several sources of investment for retirement instead of just one so you can minimize your risks.

Prefer a Passive Investment?

Even if you prefer to invest passively without worry of developing and re-selling land, you can still take this route with raw land investments. There are methods today that allow you to join with other land investors and share in the profits of raw land, even while earning interest on your vested dollars while the land project is being completed. You'll partner with a professional land developer with a partial ownership stake in the land development, but you will not be directly involved with the management of the project. This enables you to invest without having to learn and implement all the phases of land development.

If you'd like to learn more about raw land investments and how you can benefit, there are online gurus that have studied this type of investment and can show you how to create a lucrative retirement investment from start to finish. Go online now to start realizing your retirement dreams with raw land investments.

Chris Robertson is an author of Majon International, one of the worlds MOST popular internet marketing companies on the web. Learn more about Raw Land Investments for Retiring.

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Selling Land - The Tips

In our world today, owning a land is one of the best achievements you can ever make in life. It is one major step that guarantees you a glorious future during your retirement. However, in many countries of the world, people do sell their lands for one reason or the other. While some sell out their lands, others are in the business of purchasing them for keeps.

The act of selling a land has been an age long phenomenon. People in the past have their own local ways of selling their lands. However in the recent times, things have changed. We live in a world ruled by the law. Most countries today are operating through the principles of democracy. In such democratic settings there are certain laws governing the various aspects of life. When it comes to selling land, there are also the constitutional ways of going about it. There are proper land use decrees in most nations today.

Indeed, if you're interested in selling a land, there are some important tips to bear in mind. Discussed below are some of those tips to help stay out of troubles when you have made the decision to sell.

1. Put the Land's documents together

In selling land, documents are very vital. The very first document you have to get ready is the "certificate of occupancy". This document is very vital. It is the actual proof that you're the real owner of such lands. Usually the certificate of occupancy bears your name in bold prints. You must have to get this document in tact. In fact, the certificate of occupancy is the real land evidence you actually want to sell, without it, no insane person will ever come near to purchase the land. This document is what you'll actually transfer to the buyer once he or she agrees with your price. In some countries, there's another document known as "right of ownership". This is also in form of the certificate of occupancy; both of them do serve the same purpose.

2. Register with estate agents

One major strategy you need to engage in selling land is to register with estate agents around you. These estate agents are also known as estate surveyors. Their duty is normally to help you sell the land very speedily and in a good price. You can never sell your land on your own. You need the help of these people. In most cases, they usually end up selling the land for you to the highest bidder. However, the note of caution here is that you need to be very careful with the kind of agents you're employing. There are rogues and dupes out there. Never commit money or your certificate of occupancy to any agent until you're sure of the reality of the deal.

3. The Need for Witnesses

Selling land is not like selling any other ordinary property. Land is immovable and hence it could cause some fracas when sold in illegal manner. There's always the need for you to engage witnesses in selling your land. The first witness you need to engage is a lawyer. He or she has the duty of preparing the sales document for the land. Usually, there must be an agreement or pact between you and the buyer. Such a pact must be well written, typed and documented. In such a pact there must be a space for you and the buyer to sign. Again, you need to call in a 3rd party as your own witness while the buyer also comes with one.

In the final analysis, you need to do everything legally. Never rush into the deal of selling your land. Always think deeply before you go into the deal.

Steven Martin is an experienced land purchaser and also provides a Quick Land Sale service. He works at http://selling-land.co.uk/

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.