Why I See Advantages In Property Speculation

By on July 22, 2014

When you buy an apartment building for rental income, you make a substantially huge financial investment. You are now responsible for a number of things, such as managing it yourself or hiring that position out. There are always repairs to be made and keeping the occupancy levels up. Whoever told you that this is smart passive income must have a screw loose somewhere.

But it does not have to be this way. You can avoid all these landlording headaches by taking a look at speculation to see if it is something suitable for you. Speculating in properties can have some advantages. Let’s look at purchasing a property that does not have any buildings attached. By doing research, you can locate large properties that are near an ever expanding population. There is no need to do anything with the property right away. You could just hold the property and then sell when its value increases to the point that you make a great profit. There is also the possibility that you hold onto the property and develop it. Depending on the zoning, you could put up residential houses or commercial buildings. This property can then bring in monthly income. Take note, that while you hold the undeveloped property, there is no maintenance which can be viewed as a bonus. The element of time will also play a big role in how well you can exit your investment at a profit.

By looking over the planning and zoning records, you can plot out where the infrastructure is headed. Look at highway planning. Do you see plans for a multi-lane highway where none exists now? This is an opportunity waiting for an eagle-eyed player to get a foot in. Multi-lane highways mean customers and transport trucks to deliver goods to those customers. Big box stores are always looking for towns and cities that are growing and that have the existing highways or plans for multi-lane highways. Big box stores are keen on expanding into even the smaller towns, so long as there is adequate roads to accommodate the customers. As you can see, the commercial aspect can be as lucrative as residences.

Research takes many paths. Surely you will have to go deeper than an average investor who is buying and holding for the long term. Real estate goes up in the long run. But short term speculation requires deeper information and better advice from professionals. The returns can be worth the effort. Consider finding out what the attitude of the nearby population is. Are they for or against commercial properties, big box stores or large scale condominiums? When you can clearly identify the market, you will be able to meet their needs on a level your competitors are unable to. There is a great advantage to finding out what the attitude is and delivering what the population is in agreement with. The city council and Chamber of Commerce are good sources, as to what the pulse of the city is.

Land speculation has a bonus that some people never think of. People who are very family oriented always look for ways to increase the wealth of their families for generations to come. Researching and buying property gives you a terrific investment to pass along to your children or grandchildren. The chances for a much higher gain are there. Instead of putting a monthly sum into the bank for your children, you can speculate on property… do some great research and have an amazing investment. By speculating and investing wisely in land, remember when you want to add it to your estate… you need to investigate the wide variety of trust funds available. Your lawyer can help you pick one that has the best tax advantages.



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