Do you want to diversify your real estate portfolio? Investing in land in Detroit is a great way to do it! In this post, we offer 5 things to know about investing in land in Detroit!
Many people fail to consider adding land when they are investing in Detroit real estate. However, land can be a great addition or starter property for the budding investor. With its ease of ownership and only minor costs, it is a great way to pick up a property with potential high value at a relatively low price.
Land requires little to no maintenance. You may have to remove weeds from time to time or trim a tree or two, but all in all, owning land isn’t going to cost you very much to own. You won’t have utility bills, repair costs, or expensive maintenance fees. The one cost you will need to consider is the taxes. Even if there isn’t a structure on your land, you will still need to pay taxes on it. That said, the taxes are very minimal compared to a single-family home. Just make sure you are recording your costs so you can price the property correctly when you decide you want to sell it.
When buying a house, you’ll be competing with both private buyers and other investors. You can easily be outbid or your offer may get overlooked altogether. There aren’t as many people out there interested in buying a piece of land. Sure, some people want to build their own home and there are other investors out there in the land game, but you will have less competition and will likely be able to get a deal when you look in the right places for land in Detroit. For many people, investing in land is a great way to add to or to quickly build a solid real estate portfolio.
Easy To Acquire
With less demand for land, it makes it easier for you to acquire and add to your portfolio. With just a few thousand dollars, you can buy land in cash, adding one, if not more, properties to your portfolio. It is the gateway investment for many investors out there as its low cost and ease of ownership make it easy to get started and to learn about the real estate industry. Just make sure that when you are buying land in Detroit, that your plans for it are feasible. You don’t want to make plans to build a duplex, only to find that the land isn’t zoned for it or that you aren’t able to build there at all. Working with a professional will ensure you find a piece of land that meets all of your needs without any hidden surprises.
Multiple Exit Strategies
With a house or other structure, when it’s time to get out, you will typically be selling the property in a condition similar to what it was when you bought it. Sure, you can make some improvements to a house to increase the value, but with land, there are a number of options to capitalize on. Owning land is a very versatile investment. You could build and then sell the property. You could subdivide the land and sell off the lots individually. Or you could look for land in an up and coming area, selling when the time is right and making money on the flip. Whether you opt to build, hold, or flip, land is a strong and often-overlooked investment choice. Land is versatile. And with its low overhead and simplicity of ownership, it makes for a great addition to any Detroit real estate portfolio.
Working With A Professional
When looking for the right piece of investment land in Detroit, avoiding the MLS can help you find land at much lower prices. At We Buy Houses in Detroit, we are able to find incredible deals on land in Detroit, passing the savings on to the buyers we work with. Working with a professional buyer will ensure you get a great deal on land with high potential for future profits. We do all of the work – the research and feasibility studies are done for you. You’ll be able to find the perfect piece of land that fits into all of your plans and doesn’t turn out to be something you aren’t able to do anything with.
Whether you are looking for land to develop, hold, flip, sub-divide, or even build on for yourself, the team at We Buy Houses in Detroit will ensure you are getting a great deal! We know what to look for, where to buy, and what you should really be paying. When you are ready to invest in land in Detroit, working with our team will help you find the perfect plot!