Three Reasons Why Land Ownership Is a Wise Investment

You work hard for your money, so it makes sense that you would want it to be stored in a safe place— or better yet an investment you know will become more profitable in the long run. There are lots of ways to invest, and each of them fluctuates in value depending on the behavior of their particular market.

Some people purchase stocks in an ever-changing market, others invest in the bitcoin industry, and others still invest in plans for their futures, like retirement plans.

But have you ever considered the benefits of land ownership?

Here at SRC Land, we want to help you understand the hidden potential of property investments so you can decide if purchasing land is the perfect type of investment for you, your family, and your financial needs.

1. Property is a secure and limited resource

When you purchase your own property, it’s usually impossible for it to be destroyed or stolen. Nobody can just come up, take the land, and run. This makes property ownership an investment you don’t need to worry about losing. 

There’s also an extraordinary amount of open land right here in Harlingen that’s available— but it won’t be forever. Property is not an infinite resource; nobody can build more of it. This means that your land will be valuable in the future whether or not you build on it. If anything is for certain, someone else may want to build there in the future, making it something that will always be in demand.

2. Land ownership is inexpensive

If you’re interested in investing in land ownership, and you find a lot for the right price, that initial purchase may be all the money you need to put into the investment. Unlike renting an apartment or paying off a home with a mortgage, buying land outright allows you to avoid fees and monthly charges. 

Another benefit of owning vacant land is that insurance and taxes on that sort of property are generally pretty inexpensive. Essentially, once you complete the purchase, you’ll have yearly charges, charges that are insignificant in comparison to the price of maintenance needed on a rental property that has tenants who need to be checked in on and monitored for monthly rent payments.

3. You have options regarding how to use your land

Investing in vacant lots can provide you with many options for how you strategize and turn a profit. First, you can divvy up the land and sell the portions to local developers who are looking to build. This is the fastest option, but it usually relies on an increase in the worth of the land since you made your initial purchase.

Second, you can build on the land on your own. This option can be costly and is likely to bring with it additional fees, but building on your property almost always adds value to the lot. 

The last way to make a profit off of your property investment is to hold onto the property until you see an increase in the value. Once the value reaches an amount that makes sense for you, you can sell the land. This final choice is one for investors who are in it for the long haul and willing to maintain their land until they figure that it’s time to sell. 

SRC Land Can Help You Find the Perfect Lots for Sale in Harlingen

Land investment is similar to any other kind of investment: there are both pros and cons. Doing your research on certain aspects of the land in Harlingen–aspects like the timeline of investment, price, and its value–can help you decide if it’s a smart financial choice for you.

 

SRC Land can help you find all of the information you need to know about the benefits and risks of land ownership.

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The Covid-19 Impact on Real Estate

The spread of COVID-19 has had massive impacts on all of our lives. From getting groceries to paying rent, everything is a little bit harder right now, and many are struggling to make ends meet. One question on many people’s minds is how the pandemic will affect the real estate market.

Luckily for Texas residents, the real estate market hasn’t slowed down too much due to the virus. Now that businesses are reopening in Texas and other parts of the county, the normal way of doing things, like touring tracts of land and holding open houses, is starting up again. The process may be a bit different, but real estate is still an incredible investment opportunity.

Real Estate Investment Still Makes Sense

While there is a considerable amount of uncertainty and volatility in the real estate market because of the pandemic, the overall trend in real estate has historically always been towards higher allocations and investments in real estate.

Real estate allows individuals to invest in their future with a high probability of good risk-adjusted returns. Real estate is less correlated to other asset classes, meaning it represents an excellent way to diversify your financial portfolio.

While the value of many assets is closely tied to the overall performance of the economy, real estate is a safe investment during times of volatility in the commodities and equities markets, especially now, and over the medium to long term, experts expect to see a continued flow of capital into real estate.

Long-Term Trends Accelerated by COVID-19

There have been a number of trends in the real estate market that have been accelerated by the novel coronavirus pandemic, and experts expect these trends to continue after the pandemic has ended:

  • Rising Capital Allocations — Real estate is increasingly seen as a “flight to safety” compared to other asset classes.
  • Urbanization — The pandemic is likely to influence future urban design.
  • Technology — Work-from-home technology is likely to influence how business is conducted long after the pandemic ends.
  • Sustainability — As we return to normal post-pandemic, it’s likely that there will be a renewed focus on sustainability and climate responsibility in the real estate sector.

With a Variety of Properties for Sale, We’re Confident We Can Find the Ideal Lot for You.

Once the pandemic is over, there’s no doubt that all of us will be in the midst of adapting to a “new normal”. New trends have already begun to take hold, and governments, businesses, and communities have all faced adjustments. Still, there will be consequences to this pandemic which we have no way of foreseeing.

Despite all of this uncertainty, real estate remains a good investment. While the stock market is yoyoing wildly, real estate has been relatively more even-keeled. If you are considering purchasing a plot of land in Texas on which to start your American dream, you’re already on the right track. Now, all you need to do is contact the team at SRC Land to start looking.

Locate the perfect place in Harlingen to build you and your family’s future today.

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