Investors in Canada know many of the virtues of buying property. Renovating a property from a distressed state to a luxury retail property offers exceptional awards and returns. Yet, some areas of property investing are seriously underutilized in the Canadian real estate market. Land is often ignored entirely, often because many investors are unaware of land buyers they can potentially flip to. They also have a hard time assessing the value of the land besides using basic records.
Land offers incredible investment opportunities for real estate investors who are willing to look past a few obstacles and find the diamond-like potential underneath. Below are three Canadian land investment opportunities, which are illuminating examples of how some big thinking could surface grand financial rewards.
Full Service, From Acquisition to a Sale to Major Developer
Some land sellers have a full-access network available to support their buyers. These entities primarily find land offerings that are free of zoning and coding restrictions. They already handle a large portion of the sifting that can occur. Subsequently, a buyer could establish an arrangement with a real estate investment company. They can provide a full spectrum of services that brings buyers through the purchase and final resale of the property to a land development firm in Canada. The company can also find essential permits, which is an attractive feature for any buyer.
Land opportunities can come with services, and land buyers are not often left to their own devices. Urban developers and real estate firms can propel a resale and get the investor beyond their expected return on investment.
Built-in Diversification and the Barrier-of-Entry
The barrier-of-entry provides an excellent opportunity for a Canadian land investment. Investment resources, such as Urban Star Canada Land, dictate a $10,000 minimum for land purchases. The $10,000 barrier-of-entry is substantially lower than the average $200,000 needed to buy a property (not to mention the additional thousands needed for renovation). The sheer accessibility of land offers a great opportunity. This is matched by the built-in diversification. Simply by buying land, an investor is spreading out their portfolio and property types.
The Spread of Raw Land
A typical land purchase can progress in one of two main ways. The first is a full development for Canadian land investment opportunities, and the idea is to buy the land, screen for permits and resell it to a land developer. This is its own version of a property renovation and flip, though no raw construction is involved, at least until the final sale to the developer.