If you’re starting to think about retirement and what this next chapter of your life is going to look like, you may have a lot of questions. When to retire, even IF you should retire, what to do and where to go when you retire are all significant questions that come with this exciting (and hopefully relaxing) new chapter. Some people choose to move to active retirement communities, while others choose to downsize to a home closer to their family. Some retirees find the home of their dreams, while others find something modest that they can check into in between travels. However, more and more retirees are choosing to buy land as part of their retirement plan to diversify their portfolios and set them up for a comfortable next phase of life.
When to Buy Land for Retirement
It’s becoming more and more common for younger generations to start being proactive about their retirement in their youth. They understand the power in investing in retirement early and learn the benefits of delayed gratification quickly. The earlier you can buy land for retirement, the more equity you can build. Buying land years before you plan to retire allows you to develop the land into the place you eventually want it to be. This takes careful planning and research, as you want to make sure the land you buy now will be what you want it to be when you finally get to retire. Once you’ve carefully considered your ideal timeline, finances, and the real estate market in the area in which you plan on investing, make the first steps to make your investment happen. The sooner you can purchase your dream land, the more time you have to transform it into the perfect retirement haven.
Why Buy Land For Retirement
Why do some people choose to buy vacant land over investing in existing property? There are many reasons, but we’ve narrowed it down to the top four:
It’s a hands-off investment for as long as you want it to be.
The moment you buy an existing property with a home on it, you’re responsible for maintenance, tenants if you’re renting it out, and paying property taxes and other associated costs. With land, you buy it, and it just sits there until you’re ready to do something with it. You don’t have repairs to worry about or tenants to hassle for the rent. You just have land that is yours, waiting until you’re ready to build on it.
Land sellers are usually highly motivated.
One of the benefits of buying land is that sellers usually don’t have a strong emotional attachment to the land, which means they’re more likely to negotiate price and work with you when it comes to financing. Most of the time, sellers just want to get rid of the land because it costs them money and they don’t know what to do with it. This puts you, the buyer, in the driver’s seat. You want it, they’re ready to get rid of it, and they’ll usually be willing to do whatever it takes to get the land off of their hands. Land sellers are typically separated from the land by distance, making them emotionally unattached to the property and willing to offer good deals to close the deal.
There’s less competition.
It’s beyond frustrating to find a home you love, put in an offer, only to be beaten by someone who got to it five minutes before. The only thing more frustrating is having that happen over and over again. When buying land, this rarely happens. The competition for land is much less than buying a home, which means once you find a lot you love, you’ve got a great chance of owning it.
Buying land puts you in the driver’s seat.
The great thing about purchasing land is that it’s much more realistic to acquire land for cash, eliminating the need to work with banks and mortgages. If you can head into your retirement without monthly mortgage or rental payments, you’re setting yourself for financial success. You’ll have all of that extra money to spend on traveling, spoiling your grandkids, gardening, or working on your dream car. Buying land usually requires very little capital up front and can get your retirement off to a great start.