People started exploring different and the best land investment types to buy since real estate has emerged as the safest investment opportunity.
Investing in land is one of the most powerful strategies for making money in 2024. Over the past few years, demand for land investment opportunities has experienced an uptick. From 2023 to 2024, rural land sales increased by 155%. This growth is due to the stability of purchasing the right piece of land.
In today’s market, when investment is a subject of risk and uncertainties, is it smart to buy land right now? is a common question. Certainly, land investment is considered a less risky and profitable choice as compared to other forms of investment, like investing in land vs. mutual funds. There are many benefits of land investment, especially avoiding many of the complications that can come with other types of investment.
If the concept of investing in land is new to you, and if you are still carrying a doubt, is it a good investment to buy land? Then take a tour through this article and discover the exciting world of land investment and the different types of land available and learn where to invest in land in 2025
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Benefits of Investing in Land
Before we begin to explore the types of best investment lands, let’s learn about the many benefits of investing in raw land.
Limited Supply:
Land as a commodity is finite; you can’t produce more of it. And since there is a limited amount of developable land available to invest in, the price of land will only continue to rise. Therefore, if you hold a land investment, you will see great returns in the future.
No Hassle or Upkeep:
No construction! No refurnishing! No repairs! No maintenance! And no hassle with tenants! Owning or investing in land does not come with these normal issues. Once you purchase it, sit back, relax, and watch your investment grow. Nevertheless, to ensure you are buying the right property, knowledge of how much raw land appreciates per year is important. You must also consider following a thorough land-buying guide.
Less Competition:
There are several types of land to consider when buying land as an investment, but most of the investors opt for houses, apartments, and other developed properties. As a result, there is often major competition in this segment of real estate investment. Alternatively, the world of raw land investment has less competition. You can purchase a piece of raw land at a very affordable price, making the initial investment inexpensive.
In addition, owning raw land provides you the flexibility to either develop or resell it for a higher price, especially in the top states to buy land. As market conditions do not affect land investment, many investors wonder if it is now a good time and where to invest in land. However, it is advised that while researching the perfect land to invest in, you must consider other factors that can affect your ROI in the future.
Types of Land Investment to Look Forward
Now that you know the benefits of buying land as an investment, let’s take you through some of the types of land for sale to look into.
Real estate investors have several types of land to buy or invest in. However, the buyer still has a doubt: What is the best type of land to invest in right now? The selection of the best land investment opportunities depends on factors such as economic growth, market demand, and personal financial goals.
Here is the list of types of lands to invest in that you can consider as a potential opportunity for 2025:
1. Farm Land:
With the agricultural market increasing with the best land investment practices and opportunities, investing in farmland has emerged as a profitable scope. Thus, many consider it to be the best land for investment. Per statistics, farms have an average of 11.5% yearly return. Plus, having your money locked in farmland investment will settle out your risks and will generate a passive income source.
So, if you are pondering whether land is a good investment right now? Gear up! because now is the right time to capitalize on the return from farmland investments. You can invest in lands like farms for both crops and livestock, either directly or via farming-related companies. Furthermore, with us at APXN Property, you do not have to wait for an eternity to get your land investment loans approved by banks. You may consider opting for other alternatives, such as owner financing, to buy land right away while you secure the rest of the amount.
2. Subdivision Development:
Among land investment opportunities, this involves purchasing a large piece of land and then subdividing it to build multiple houses. Subdivision development is an effective strategy to add value to your land for sale. More parcels of land mean more profit. When you divide the land into smaller pieces, you can sell or lease it to different buyers and keep some for yourself.
Additionally, finding buyers for small divisions of land is much easier as compared to finding buyers for a large developed property. This shall keep the demand for your subdivision lands much higher than your competitors trying to sell one large plot. However, when selecting such land for sale, ensure city services are extendable to the area at competitive prices.
3. Commercial Development:
Another best investment land option is to convert raw land into a warehouse, storage facility, factory, mechanic shop, or shopping complex. Likewise, you can develop your raw land into an array of things to generate multiple sources of income. However, make sure to gauge the potential of commercial land to invest in based on your preferred development work.
Accessibility, location, and necessities available on or near land are some of the many factors that you must consider while choosing the best land investment properties. These factors will speak a lot about the land and whether it is a good investment to buy land or not right now.
For instance, if you are likely to open a shopping space, then road access to shoppers living in proximity would be of prime importance.
4. Recreation:
Using raw land for recreational purposes comes with a range of both personal and financial benefits. This is another notable land investment opportunity. Recreation purposes are an affordably priced long-term investment. When you buy land for recreational purposes, you get the opportunity to earn income as well as use the land for entertainment purposes.
This way you optimize land usage, make money, and hold the land that increases value over time. There are several ways you can invest and use recreational land following a comprehensive land-buying guide and generate wholesome ROI. You can develop it into a weekend getaway spot, your new favorite fishing location, a community garden, an outdoor family retreat, or even a place for camping, hiking, riding ATVs, and much more.
5. Greenfield land:
It is present in both urban and rural areas and comes with many benefits at lower prices among diverse land investment opportunities. As demand for land to invest in is increasing, greenfield land is gaining popularity. This land can generate high-value appreciation in the long term. This approach benefits companies due to tax reduction as it holds advantages for investors as well as for the nation.
6. Transportation:
It can be a strategic and best land investment approach for high appreciation value. Investing in transportation land offers several advantages for land investors seeking strategic and lucrative opportunities. Transportation land is a lucrative investment opportunity as it is an essential part of infrastructure projects. The transportation development projects will never stop, as they are essential for better accessibility and connectivity. Therefore, investing in transportation land will gain substantial appreciation value over time. This shall help you understand and reap benefits with an idea of how raw land appreciates per year.
Also, good nearby connectivity increases land demand and land investment opportunities. Similarly, the demand for transportation increases in areas where infrastructure development is potentially high. Additionally, the government’s initiatives to improve transportation land can benefit investors. This investment is a blend of demand, support, and an abundance of promising opportunities.
7. Residential:
Residential land investment opportunities are a sound approach associated with various advantages. With the high graph of population growth, the demand for homes is constantly in demand not just in urban but in rural areas as well. Buying land as an investment in a prime location has the potential of building houses or residential complexes that can significantly give a high appreciation value. Investing in residential land in top states to buy land in the USA is considered less risky in comparison with other real estate investments.
Best Places to Invest in Real Estate
Now that you are familiar with all the different types of land and how to invest in land, it’s time we go over the locations. Among the top states to buy land in the USA, a few places are worth considering for novice and seasoned land investors alike due to their anticipated price hikes. Here are some recommended best places to invest in land in the USA in 2025 based on analyzed trends.
- Oregon
- Arizona
- Florida
- New York
- Nevada
- Wisconsin
Ways to Earn Profit from a Land Investment
If you have made up your mind regarding buying land for investment and are still confused about what types of land to buy and don’t have a concrete plan in place, here are a few ways you can earn profit from your land investment.
Buy and Hold:
Among the best land investment strategies, this is a long-term strategy and is likely to be more profitable than other real estate investments. If you are considering this approach, then it is now a good time to buy land and start your investment journey.
As the price of raw land has the potential to increase in the coming years, buying and holding it until the areas surrounding your land develop can earn you attractive returns. You can purchase the land and hold it for years until it offers you viable returns.
Lease to a Farmer:
Another effective way to buy land for investment and maximize your returns on raw land is to lease it out.
If you are looking for whether it is smart to buy land right now and are fortunate to get a good deal on a piece of farmland, go for it without a second thought. Historically, farmlands have yielded better returns than bonds, stocks, mutual funds, and other types of investments. Thus, between investing in lands vs. mutual funds, the latter guarantees higher returns while running on very low risks.
Furthermore, statistics say that the capital value of farmlands has risen by 4.6%. And when taking income generated from the lease into account, the average annual returns amass to 11.8%. That’s quite a lucrative return.
So, by leasing the land, you are possibly going to get a good return, which will even help you cover up your tax and insurance costs.
Lease to a business:
Many businesses look for raw lands for sale to conduct their business operations. They lease the land for a long duration and pay you the rental amount on a monthly or yearly basis. Several types of businesses might also be buying land for investment; these may include pet sitting, animal breeding, or ones needing huge storage lots.
Apart from this, you can also lease your raw land for other purposes. These include billboards, ranchers, and cell tower installation. Leasing is a pretty good and straightforward way to make a regular income with your raw land.
Buy Low, Sell High:
As cities grow, raw land emerges to be one of the strongest and best land investment avenues. If you can buy land at a lower price during market lows and then sell it later when the price spikes, you can generate a substantial profit. In this condition, owning land is a good investment, and it can give you high returns.
Additionally, you can also develop your raw land into something more to increase its value and utility. You can use the same piece of land to develop multiple entities to increase your income sources.
Final Words
The options covered above are the most popular types of land investment opportunities, but they are not the only ones.
There are many other ways out there that can offer you profitable returns if you know how to invest in land. However, regardless of the type of best land investments you choose, it is recommended you do your research before deciding. Like all other investments, land investments also carry a certain degree of risk. Alternatively, you can find trusted real estate guidance with APXN property, where market experts offer a detailed land-buying guide to help and guide you in the right direction.
So, to answer, “Is it good to buy land?” Remember, buying land is a good investment with the proper research. However, it is not built into an overnight money-making scheme. Instead, it requires a robust strategy, research, and investment to gain profitable long-term results.
