The negative impact of the Covid-19 pandemic extends to nearly all types of markets, especially the real estate market. In big cities, showings and sales have significantly slowed down, inventory has dropped, and the priorities of a lot of buyers have changed.
Right now, vacant land properties have grabbed the interests of many real estate investors. They see vacant land as a relatively safe investment during this crisis, and there’s also a wide range of construction and sales options for vacant plots when this pandemic is over.
Here are some of the reasons why buying a vacant lot can be a good purchase during this Covid-19 pandemic.
When buying real estate, buyers always prefer to visit the property in person than simply view it digitally. Despite the emergence of different virtual viewing options like personalized Facebook Live and 3D tours due to social distancing protocols, property buyers want to do in-person visits and feel the vibe of the site.
The good thing about vacant land inspections is that you can do in-person property visits because there’s nobody living on vacant land and you can view it from a safe distance. So, it’s more practical and safe, in some respects, than house tours, especially in such a time when access to real estate properties is limited.
Moreover, there are brokerages and agents of vacant lots that provide drone footage and Google Earth views of the properties. You can identify access points and property features through videos, pictures, aerial footage, and plot maps of the vacant land. In this way, you can view the property in the comfort of your home, away from the threat of the coronavirus.
Although land can still be affected by market fluctuations and decline, it requires little expenses for improvements in the short-term. Compared to owning a pre-existing home, holding an empty lot doesn’t necessitate the owner to keep up with the trends in home interior trends and the like.
The utility expenses, maintenance fees, and property taxes you have to pay are lower than owning land with a pre-existing home or structure. You can also tailor your vacant land to any type of market. It’s for you to decide whether you want to build a small or big house in it.
Also, the land itself is the thing that almost always appreciates in value over time. On the other hand, the improvements in a home and the structure itself may depreciate because of constantly changing buyer trends.
So, if you want to acquire a valuable investment, buying land is a good option for you during this pandemic. It also provides you with options once everything in the world is back to normal. For example, you can flip the property as-is to a willing buyer or you can develop it for profit.
Today, a lot of investors see a silver lining in putting their assets in a piece of vacant land. They project a return on investment of around 5% annually if they invest in them. That’s why some investors right now are pulling their investments out of mutual funds and stocks and putting them into this type of real estate property.
Among the most compelling reasons why now is the best time to invest in vacant land is that its demand may increase after this Covid-19 crisis.
According to real estate experts, second-home markets may see growth in the first couple of years after this pandemic. It’s because people will most likely think of residing in metro areas and having secondary properties outside of big cities.
In the United States, many buyers are increasingly interested in purchasing vacant land with expansive acreage. This trend indicates a desire to own open spaces as well as an interest in building custom houses where they could spend time if another pandemic or crisis ever happens again.
The longer this pandemic goes on, the more the demand for vacant lots will skyrocket. Since more and more people in the cities have learned the hard way because of this coronavirus plight, they’re now re-evaluating a way to live a comfortable life in a secondary residence in a place where there are not many people.
So, if you’re wise enough, you should purchase a piece of vacant land now because it can bring you a significant profit once you sell it to people who want to leave the metropolis after this coronavirus pandemic.
Far from being insensitive to the plight that we’re currently experiencing due to the Covid-19 pandemic, but this time is the right time for real estate investors to put their money in vacant land properties.
A vacant lot is a flexible investment, and its demand may increase once this crisis is over. So, you shouldn’t shoo away this chance to gain profits off a vacant land investment.