Property investors are seeking real estate investment property for a variety of reasons. Some investors are looking for a way to generate an additional income while they continue to work their regular job; others want to live the “good life” without having to continually worry about where their next paycheck is coming from. Still others are purchasing property as an addition to their existing portfolio of homes and have goals of making that money back through rent and appreciation. In any case, real estate investment property is becoming one of the hottest markets in today’s real estate market.
The simple answer to the question posed in the title is no. However, there are two main types of land investment that property investors are seeking today. First, they are interested in acquiring land for housing development purposes. Second, they are interested in purchasing land for personal use, either as a vacation home retirement haven, or any other purpose.
Now let’s take a look at these two primary land investment types. Although there is some overlap in the techniques used by both investors, the two primary techniques most often used are quite different. Here is a closer look at the difference between these two land investing techniques.
Those who are interested in developing property for housing need to pay property taxes and also maintain county property records. When it comes to raw land investment, many people who purchase property do not pay property taxes because they believe that they can avoid them. Unfortunately, this is rarely the case. In order to pay your property taxes, you must be committed to maintaining your property tax records on a yearly basis. This includes renewing your local permit to carry a gun.
Many investors also like to buy property without paying property taxes because they think that they will eventually make money on the investment. Unfortunately, it rarely works out that way. Many times these tax lien holders will foreclose on your property if they become delinquent. If you have not insured your land or are in any kind of financial distress, you could be forced to leave town with your investment. This is why the safety of your investment is so important to many investors
The bottom line when it comes to land investment is this. You need to have a solid financial plan before you even think about getting involved in the buying and developing of raw land or any other piece of land. You also need to have the proper insurance to protect your investment in case something happens. If you have any questions about the laws governing land investing in your area you should contact your local county courthouse. They will be more than happy to help you find the information you need to keep you and your family safe.
