Probably the number one reason why anybody would by land would be to build property on. The investment value of land that has permission to have property built on is almost limitless, of course this depends on how much land and how many properties are to be ventured.

The other things to consider when buying land for building purposes will be building costs for things such as:

• Building Materials
• Land Surveys
• Possibility of Pipelines
• Labors Costs
• Electric, Gas and Water Hookups
• The IRS – Your taxes and the final property taxes.
• Making sure all permissions and building codes are sought and applied.

There are massive profits to be made through building property on land, whether it is living accommodation or commercial enterprise. There is also the consideration of possible permanent income in the long term through renting/leasing out property that has been built on the land as opposed to straight out sales.

Reason Two – Prospecting

Especially where land prices have fallen over the last few years or just in general, land can have great investment value for the future. Many people who do a bit of homework on local or national demographics statistics can find that profits can be made through holding onto land for a while. Maybe a profit can even be turned over rather quickly if land has been acquired though a short sale or a seller who has been desperate to sell.

There are a few pros and cons to buying land as a planned future investment profit, here are some of them:

The Pro’s

• Land acquired cheaply can be turned over to the next investor for thousands more than it was paid for. Especially if an investor is looking for land in an area that is short of building prospects. When considering land for future equity looking at other land or rather the lack of land local to the said plot will play a decisive role in value.

• Holding on to land during a recession or bad economic climate can see land value rocket up when the economy evens out or the recession subsides.

• Temporary farming prospects, there is the ability to make a second income through arable farming. Maybe vegetables, fruits, wine even animals. There are many farming techniques that can be applied to land. You could even rent out short or long term plots for local community allotments. There might not ever be the need to sell the land as you have a good income coming in. Again there is always an open opportunity to sell an already established business.

The Con’s

• There is always a reverse effect to any possible prosperity; land can also decrease in value. So keeping up with the current economic climate is a necessity. So it could be that keeping hold of land for too long is a bad idea.

• Maintenance is another cost factor as land that is not being used for long periods of time can become overgrown, which can in some cases devalue the plot.

Reason Three – Mining and Minerals

“There is Gold in them there hills!”

Maybe the land that has been bought has a wealth of mining prospects, obviously the more minerals the better but the reason for buying land may be massively profitable.

Considering that oil, gold and many other minerals are in great demand then if the land is mineral rich you could be too.

It is possible to buy land and have all the mineral rights, so do not worry too much about having too many legal loopholes if you suddenly strike a silver thread or a deep well of the black gold. There are of course a few legal requirements and geographical surveys to be conducted, but they all end up with a happily ever after story!

It is always nice to allow for wildlife with any construction projects, but especially during any mining and drilling. A nice safe haven will keep everybody happy, wildlife, local people and ecologists included.

If you buy land that has a possibility of a ‘strike’ then for want of a better reason, you may never have to work again. Wouldn’t we all like to drop on something like that?