Don’t believe when someone tells you that land investing is a waste of your time, money, and effort. On the contrary, investing in vacant land is one of the best ways to build wealth.
Since land is a finite resource and a tangible asset, there’s a possibility of an increase in its market value over time. Add to it the low competition in the land market, which means that it’s easier to find great deals on land compared to houses. Furthermore, there are so many ways that you can make money by owning a parcel of land.
So, for those who have doubts about investing in land or don’t know how to make a profit out of it, here are seven ways to generate money on your land investment.
Selling your land is arguably the best way to make the most money out of it. And you can generate even more profit if you sell land in multiple lots than as a whole. This strategy is called subdividing.
You can boost the total market value of your land investment if you divide it into smaller parcels and sell them individually. The rationale behind this strategy is that it’s less hassle to find land buyers for a smaller piece of land than a single large parcel.
However, you have to ensure that your land is located in a desirable area to increase the chances of generating more profit. Then, you have to apply for legal documentation on the proposed subdivision. Don’t forget to research the zoning laws regarding subdivisions in your county to ensure that something lucrative will come out of your plans.
Host a Billboard
A vacant lot bordering a high traffic road can give you an excellent income by renting it out to advertisers. Advertising companies want to place their billboards near a busy road. If you think that your land is perfect for hosting a billboard, then it’s an opportunity for you to earn money from it.
The money you can earn by hosting a billboard on your vacant lot varies depending on the present advertising rates, billboard’s size, location, and other factors.
Do you have trees on your land? Are they good sources of timber? Well, if yes, you can harvest the timber wood and sell them to lumber companies.
Timber is used as raw material for carpentry and construction. Companies that purchase timber can pay you according to the type and age of the trees that were planted. For instance, you can earn around $2,500 per acre from the harvest of mature pine trees (over 35 years old) and $250 per acre from the harvest of young pine trees (under 15 years old).
Make sure to ask the Department of Conservation in your state regarding the legal requirements of selling timber.
Many people and businesses are looking for self-storage facilities to store stuff, such as vehicles, furniture, appliances, and business equipment and supplies. In the United States, there are approximately 50,000 self-storage facilities. Owners of these facilities earn by renting out these spaces, typically on a monthly basis.
So, if you own vacant land, you can turn it into a self-storage facility that can provide you with an excellent income. It’s estimated that this business generates a profit margin of around 11%, which is higher than the 3% to 5% profit margin of running a restaurant business.
Open a Campground
Another option to make money out of your vacant land is to turn it into a campground. But, of course, you need to consider whether the property makes an excellent area for camping. If it’s near a vacation spot, such as a hiking trail or a beach, then the lot can be viable as a campground.
You can price each camping tent for $20 or $25 per night. Imagine if your land can accommodate ten camping tents – that would be $200 to $250 in one night!
Lease Land to Hunters
Is your property home to game and quarry? Is it large enough to make an excellent hunting ground? If yes, it will be great if you rent it out to hunters!
A substantial amount of money can be earned by allowing folks to hunt for game and quarry on your property. You can build a cabin with electricity and running water to boost its marketability to hunters.
Before running such a business venture, make sure to know the local hunting restrictions at your state’s wildlife department. It’s also crucial to ask hunters for their hunting permits every time they want to hunt on your property.
A parcel of land bordering an orchard or a certain type of flowers, such as sunflower or rosemary, can be great for hosting bee colonies. You can be the beekeeper and harvest the honey yourself, or you can rent out the land to beekeepers.
Yes, there are a lot of ways to earn money from your vacant land. You can sell the land as smaller parcels, lease it to hunters, make it a campground, turn it into a self-storage facility, rent it out to lumber companies, host a billboard, or use it as a bee colony.