Everyone invests for a return, but what if you want to get a quick return on your investment? Luckily, there are ways that you can affect your return on investments (ROI) when it comes to land investments. Continue reading to discover 3 factors to examine when inquiring which land will get you the fastest return on your investment in Phoenix…
Investing in raw land is often overlooked when it comes to investments, but provides investors with a fantastic opportunity to generate fast ROI when carried out correctly. If you’re curious about how you might get fast returns on your raw land then apply these “the 3 P’s” of quick raw land returns.
Consider these 3 components when deciding which land will get you the quickest return in Phoenix…
The 3 P’s of Quick Land Returns
Price
When it comes to land investments in Phoenix, it’s often said that the profit is made when you buy, not when you sell. This means that you must be able to obtain your land investment at a decent cost. This is to say that if you want to see a fast return, you’re going to need to find land at an affordable price while simultaneously planning to sell it at a higher price.
The market can heavily influence your buying and selling prices. Ensure that the market can support these prices. Try to avoid the common mistake of buying at a low cost under the impression that you can sell at any price. Be sure to do your part and inquire what price points the market will support and if your land has the potential to be in both of the price points. This takes us into our second P…
Potential
Consider the potential you have of watching the returns on your land increase. Because land becomes more scarce and greater in demand, land value increases. What factors make land rarer or in more demand?
Let’s say you were to buy in Phoenix and see that the city is rapidly expanding in the direction of your land, the demand will likely increase at a faster rate than if you were to buy land and the city expands in another direction. However, demand by city expansion is not the only potential to see increase land value, which leads us to the final P…
Prospects
The greatest way to see your return investment increase is to buy from someone who doesn’t understand the land’s value and sell to someone who has a very specific understanding of its value.
For this reason, you need to see raw land through the eyes of a potential buyer, asking yourself, “Who might this land appeal to?” and then market the land to that group. Maybe your land is in a lovely wooded area, then perhaps a hunter or an outdoors person might be interested in your land. Perhaps your land is close to an expanding city, then consider a developer.
Summary
With time, land tends to increase in value. If you want to speed up this process then consider these 3 things when deciding which land will get you the quickest return in Phoenix.