Land Investment and How to Diversify Your Portfolio

Ranko Colevic

2023-09-19

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Are you thinking about what to do with your extra money? Do you have an investment portfolio you want to diversify? Are you looking for new opportunities that aren’t as volatile? We are constantly presented with new investment opportunities and ways to diversify our portfolio. Investments such as cryptocurrency and digital land already compete with traditional forms. And, unexpectedly, land investment is overlooked. Additionally, there are misconceptions about vacant land’s incapability of producing serious cash flow.

So you might wonder, “Is buying land a good investment to diversify my portfolio?” And the answer is yes, for sure! Here are just 5 reasons (of many) to invest in land.

1. Land is a tangible asset

Think about it, regardless of time passing by, land doesn’t wear out and doesn’t depreciate. It cannot disappear or lose its value overnight, like other investment types such as stocks or cryptocurrency. Land is a very stable investment and its value will constantly increase, as the population grows and the need for land grows with it.

2. Land is a low maintenance investment

As a long-term investment, land is very inexpensive to own and maintain. You don’t have to pay mortgages, utility bills, reparations. Moreover, taxes are amazingly cheap. Plus, you will not have to deal with tenants and related problems.

3. Land investment is less competitive

Typically, high competition investments are the more appealing options for investing. But aren’t you tired of dealing with price fights and getting outbid on every good deal you find? Land investment has low competition, so you can better evaluate your options and get very good deals!

4. Portfolio diversification

Portfolio diversification is a management strategy that blends different investments in one portfolio. This diversification will yield a higher return and investors will face lower risk. With this, land investment has a low correlation with other major asset classes. This means that adding land to your diversified portfolio can lower its volatility and provide a higher return per unit of risk.

5. You can buy and sell properties without ever seeing them in person!

When you learn how to research properties online effectively (like with our website!), you can complete all the buying and selling processes virtually. This way you use only free tools you have available online without having to visit the property. 

By now you should see how land investment not only gives you financial security but also peace of mind. You don’t have to check everyday equity and bitcoin prices. If you want, you can plan future development, such as houses or buildings, and also include real estate investments in your portfolio. But if you don’t want to get involved in any of those activities, you can also just relax and sell your land at a higher price in the future. In the meantime, why not use your property to disconnect from time to time in nature!