Is Raw Land a Good Investment?

6 Reasons People Buy Vacant Land

If you've spent any time researching raw land, you've probably seen people claiming it's "the best investment you'll ever make." (I've even said that.)

Others insist it's a terrible idea and that you should never buy vacant land.

So who's right?

The answer is...

Both.

Raw land can be one of the best investments you'll ever make.

It can also make you wonder why you just bought 40 acres where the nearest Starbucks is an hour away...

...or why your Toyota Corolla suddenly starts questioning all of its life choices when you turn down the "road" leading to your property.

Then you meet the neighbors.

They usually just stand there staring at you as if to ask,

"You lost?"

Or these guys that did not hang around:

If you're expecting me to tell you every piece of vacant land is a fantastic investment, you're probably going to be disappointed.

Sometimes the best advice I can give someone is,

"Don't buy that property."

I've actually said those words more than once.

Why?

Because the value of land has less to do with the property...

...and much more to do with why you're buying it.

Before you spend your hard earned money, ask yourself one question:

"What do I want this land to do for me?"

There isn't one correct answer.

There are countless reasons people buy land, but over the years I've found that most buyers fall into one of these six categories.

1. Long Term Investment

Some people buy land simply to hold it for the future.

Unlike a rental house, there's no roof to replace, no tenants calling at midnight, and very little maintenance.

Like every investment, land has cycles. During the COVID years, demand exploded and many markets reached record sales. Today's market is much slower.

The lesson?

Buy the right property at the right price...and be patient.

2. Building a Dream Home

Some buyers already know exactly what they want.

A cabin.

A retirement home.

A place with incredible views.

Buying land to build on requires much more research than buying purely as an investment. Utilities, zoning, septic, water, legal access, and topography all matter.

3. Recreation, Off Grid Living, and Simplicity

Not every purchase has to make financial sense.

Some buyers simply want a place to camp, hunt, ride ATVs, fish, or unplug for a few days.

Others dream of simplifying life.

I've had many clients purchase remote properties, park an RV, and enjoy the peace, wildlife, and incredible Nevada skies.

Some communities, like Humboldt River Ranch, even include cabins, RV storage, camping areas, and other owner amenities that make ownership even more enjoyable.

4. Income Opportunities

Vacant land doesn't always just sit there.

Depending on the property, land can sometimes generate income through agriculture, grazing, recreation, storage, billboards, cell towers, renewable energy, and other uses.

Understanding what's possible before you buy can make a tremendous difference.

5. Diversifying Your Investments

I've always preferred investing in things I understand.

I've never purchased cryptocurrency.

I know people have made fortunes doing it, but if I don't understand something, I have a hard time investing my money in it.

Land makes sense to me.

I can drive to it.

Walk it.

Touch it.

Stand on it.

That gives me a level of comfort that many investments simply can't.

6. Purely Because You Love Land

Sometimes there doesn't have to be a financial reason.

Some people simply love owning land.

They enjoy walking their property, watching sunsets, improving it little by little, or knowing it's there for future generations.

It isn't just another number on an investment statement.

It's something real.

Sometimes...

That's reason enough.

So... Is Raw Land a Good Investment?

Absolutely.

If it matches your goals.

Land is simply a tool.

Used for the right purpose, it can become an incredible investment.

Used for the wrong purpose, it can become an expensive lesson.

John's Last Word

Did you notice something?

Not one of those reasons said,

"Because someone on the internet told me land always goes up in value."

That's because buying land isn't about chasing the next hot investment.

It's about buying the right piece of land for the right reason.

I've bought and sold hundreds of vacant lots over the years, and I've learned one simple lesson.

There isn't one perfect reason to buy land.

I've met investors, hunters, retirees, builders, campers, ranchers, and families who all had different reasons for buying. None of them were wrong. They simply needed the right property for their goals.

I've also made mistakes. More than once. Those mistakes have probably taught me more than my successful purchases ever did.

My goal with this blog isn't to convince you to buy land.

It's to help you make a smart decision.

If you eventually buy from me, I'd love that.

If you buy from someone else because it's the better property for your goals, I'm okay with that too.

At the end of the day, I simply want you to understand what you're buying before you spend your hard earned money.

If these articles help you do that...

Then they're worth writing.

Until next time,

John Abbott

Abbott Investment Group

Land Ownership Made Simple