Land investment incurs minimal carrying costs
Investors who chase endorphins have long balked at land as a viable asset class. They argue it doesn’t produce income, it’s a slow transaction cycle, and it has to be a long-term hold.
On the surface this is hard to argue - but let’s dig a little deeper.
Does the land have a higher and better use than what it’s currently being used for? If the answer is yes, then the land has appreciable upside. And with minimal carrying costs, less competition amongst other investors, and a population of land owners that is generally eager to sell for the right price - sourcing quality deals is typically easier than other real estate.