There are three words we use to describe land in real estate: Immobility, Indestructibility, and Uniqueness. Essentially, these are the three reasons why land is such a great investment, so let’s define these terms and determine how they relate to the value of vacant land.
Guess, what? Land isn’t going anywhere (immobility). It can’t grow legs and walk away, it can’t really be stolen, and it can’t be destroyed (indestructibility). It’s here to stay, it requires very little (if any) maintenance, it’s tangible, and its value is always increasing.
Land is also a finite resource (uniqueness). No one is making any more of it, so there are limited quantities available. There is very little competition at purchase, but later, especially if you choose to auction the land, farmers, investors and developers will compete to purchase the vacant land depending on its location and quality.
In short, land is a long-term, physical asset that doesn’t wear out and doesn’t depreciate. It is also relatively inexpensive to purchase. Nothing can get broken, stolen or destroyed. Combine all of these qualities of immobility, indestructibility, and uniqueness with the ability to easily purchase land, and you’ve got matches made in heaven.
If you’d like some more information about buying (or selling) land in Missouri, Illinois, Arkansas, or Kansas, give me a shout!