There are three types of real estate investments namely;

Commercial property

Residential property

Vacant Land.

Vacant or raw land is a plot of land without any established buildings or equipment that can be used for the development of commercial or residential real estate or for farmland, ranches, or natural resources such as mineral, water, or air rights.

In essence, when you invest in land, you are buying untouched, raw land, that has not been developed. The zoning of land is very important because it determines how the land can be used for future development. There are eight main categories of land use: Types of Land Investments

Ways to invest in land

Just as there are several ways to invest in residential or commercial property, there are multiple ways to invest in land. Below are some of the more common methods of buying and selling raw land.

Land development

Purchasing unused land for a potential development is sometimes called subdivisions land estate development. Subdivision of land is the principal mechanism by which communities are developed. Subdivision is a vital part of a community’s growth, determining its appearance, the mix of its land uses, and its infrastructure, including roads, drainage systems, water, sewerage, and public utilities.

Flipping land

Flipping land is one of the most popular methods of land investing and simply means you buy a parcel of land for a low price and sell it later for a higher price.

Developing raw land

Some investors buy land to develop it themselves. While this can be a profitable venture, it can also be a long and costly process. If you want to develop commercial or residential property, building from the ground up, buying raw land in a suitable location and zoning will inevitably be a part of the process.

Buy and hold

Some land investors will buy raw land with the intent to hold the land long term. They may want to develop the land in the future, want to wait for the demand to increase (thus increasing the value of the land), or want to hold their land rights, which could include water, air, or mineral rights. While the landowner holds the property, they are responsible for paying annual taxes and maintaining the property as required.

Buy and lease

If the goal of owning land is to create a passive income stream, which is residual income that is paid to the investor monthly he landowner can lease the land for a third party to use. For example, if the land investor owns 40 acres of farmland, rather than farming the land themselves, they can lease the land to a farmer. The farmer pays the landowner monthly rent and is responsible for the land development and maintenance of the land, including paying taxes.

Buy and sell with owner financing

Another option for creating a passive income stream when investing in land is by selling a parcel of land with owner financing. Owner financing is when the seller of the property carries financing for the buyer, essentially standing in for a bank. The buyer provides a down payment and repays the seller of the property the remaining balance of the loan according to specific terms. The buyer of the property is responsible for the land development and maintenance of the land, including paying taxes.

SSalongo Wabwirwe Willy (land broker)

               0774535253