Types of land investments

One of the most popular ways to preserve capital and make a profit is investing in non-residential real estate. Their main advantage is the minimum amount of risks. The decision to buy land for commercial or industrial construction opens up the opportunity for the buyer to receive a regular high income: all that is needed is a competent selection of the type of investment and, directly, land.


Why is it worth buying a land plot for commercial real estate?


1. The land market is more stable even in times of economic crises, which means that recovery after them takes less time.
2. Compared to commercial premises, competition between investors is much less.
3. Demand for liquid plots is almost always high.
4. Indicators of land prices are growing every year, which makes such a financial investment as profitable as possible.


Investment types



Passive. One of the simplest options for investing funds: all that is required is to buy a land plot and, at the moment of its market value increase, sell it at a higher price. Another popular way of passive land investment is to purchase it in order to rent it out. Its main plus is a minimum of risks when investing, and a minus is a lower income from land than with other types.
Active. A great way to get the most out of your purchase. Such an investment involves the construction of residential or commercial real estate, the modernization of the site and the change of its intended purpose. All of the above measures will ultimately increase the profit from the land.
Mixed. In this type, the above techniques of active and passive income are combined depending on the activities carried out on the land. The blended investment strategy is great for novice investors who do not have high capital for regular active investments. Most often, investors act as follows: they buy a large land plot, divide it into several smaller ones and build commercial premises on one of them, they are subsequently sold, the rest of the territory is built up with the proceeds, which can also be sold or leased.