Investors who have followed a well-devised investment strategy will find themselves entering their golden years with a healthy nest egg and a monthly income that will allow them to enjoy their retirement with complete control of their future. Diversifying your investments among different market sectors is the key to building your real estate portfolio security. As you gain experience and knowledge in each market sector, you can move on to the next and create a bright future for yourself and your loved ones. However, no matter what asset you invest in, it pays to avoid costly errors by seeking the advice of professionals. Today we will explore two fantastic investment opportunities, so read on as we explore five differences between owning land and single-family properties in Michigan.
Raw or undeveloped land is a relatively low-cost asset that investors can often attain without a loan.
Developed properties with single-family homes require much more capital, making the cost of the investment one of the most considerable differences between owning land and single-family properties in Michigan. Because professional investors like those at Providence Homebuyers live and work here in Michigan, their fingers are on the pulse of current market values. They are knowledgeable about upcoming zoning, plans for growth, and changing trends.
There is typically very little maintenance required to hold land; some may require regular mowing and clearing of underbrush. As a result, investors can expect the expenditures for maintaining a single-family rental property to run at about one percent of the home’s value per year, a significant difference between owning land and single-family properties Michigan.
Taxes assessed on vacant land are typically meager than the annual property tax bill when improvements, which is another difference between owning land and single-family properties in Michigan.
The monthly income that your investment can generate is another significant difference between owning land and single-family properties in Michigan. While the cash flow generated from vacant land can cause its source of income, single-family properties draw the attention of investors because of the higher potential level of monthly cash flow they can generate. The monthly receipts are nearly pure profit once free and clear of a mortgage, and with proper planning, this phase of ownership can coincide with your entry into living life as an entirely passive real estate investor. It’s easy to see how important it is for investors to build a competent and efficient team over the years. One they can rely on, like the professional investors at Providence Homebuyers, with the team to back up your dream.
The competition among buyers is another of the differences between owning land and single-family properties in Michigan. The majority of buyers on the market are looking for four ready to move into single-family homes, making competition for raw or vacant land much less intense. Whether you’re buying land or jumping into a bidding war for a single-family property, when you work with a professional investor like those at Providence Homebuyers, you’ll benefit from their high-level skills and ability to maintain a professional demeanor despite the most emotionally charged outbursts from sellers during negotiations.
Providence Homebuyers‘s highly experienced professional investors at Providence Homebuyers can help you explore the differences between owning land and single-family properties in Michigan. When you work with Providence Homebuyers, you bring a full-service team of pros from across the industry ready to move swiftly on potential investments. So working with one of our professional investors when you’re buying land or single-family properties will give you the peace of mind that working with seasoned investors like those at Providence Homebuyers can provide.
Contact Providence Homebuyers at 3132171075.