The benefits of investing in real estate are numerous. With well-chosen assets, investors can enjoy predictable cash flow, excellent returns, tax advantages, and diversification—and it’s possible to leverage real estate to build wealth.

1. Potentially high return on investment
   The most significant advantage of property development is the potential to generate a substantial return on your investment. However, identifying a property development opportunity likely to deliver the desired level of return can take a lot of work, especially for first-time developers.
2. Often the shorter length of the investment
   Speed is a critical factor in all property development projects, and every developer aims to complete the development and sell the property in the fastest time to ensure the highest possible profit and annualized return. If you get it right, property development can deliver profits faster than other investments, such as bonds and shares.
3. Greater stability
   Over time, the property has proven more stable than other options. Despite its ups and downs, the property market tends to be much less volatile than other markets, such as the stock market. This may be because property takes longer to sell (while shares can be sold in a second) and is almost always in demand.
4. Investment leverage
   This means that when purchasing property, you can buy more with less. You invest your funds and the bank loans you additional funds through a mortgage. Leverage helps to maximize your return on investment when you experience growth.

Land investment is a crucial real estate investment you want to know about. Land can be a boon—it offers investors better returns at lower risks and the opportunity to diversify their portfolios.

Below are six surprising reasons to help you understand why land is a lucrative investment in 2021 and will make you invest in land.

1. Land is in Short Supply
   First, land, as a resource, is becoming scarcer over time and more expensive. There’s nothing we can do to make more land. We’ve limited land in the USA; as the population increases, the demand for land and cost increase, too. Still, you can buy dirt-cheap land in some states of the USA.
2. Owning a Piece of Land Gives Peace of Mind
   Some benefits of land ownership can change how you perceive land investments. Land can be called a ‘golden child’ of investing. Once you complete the buying process, you can rest assured that no one can steal it from you or destroy it. A piece of land remains in good condition and increases in value. Owning land gives you financial security and peace of mind. Experts recommend raw land investing and buying land for future development, such as housing or building. No maintenance is required, and you can sell your land at a higher price. Thus, land investments give peace of mind and are worth every penny!
3. Land Is a Tangible Asset
   Investing in a vacant piece of land is significantly less risky than investing in stocks. Land cannot disappear or suddenly lose its value. In the worst scenario, currency and monetary values will not be stable. Regardless of the world economic situation, the value of land constantly increases.
4. Land Investments Are Less Competitive
   Most investors with investment capital prefer developments, house flipping, and condo buildings to gain profits. Generally, high competition is a primary concern when people think of investing. But when we specifically discuss land investments, it’s surprisingly different. This real estate niche has low competition; you can buy a few acres of land in a suitable location without burning a hole in your pocket.
5. Land Is Low-Priced
   Unlike other real estate assets, the land is affordable and requires minimal effort for maintenance. You don’t need to pay utility bills, mortgages, or roof repairs and replacements. Another advantage is that the land owner doesn’t need to pay for the insurance. Property taxes are the cheapest, so your property doesn’t demand unexpected costs and silently increases in value.
6. No Risky Government Legislation
   Landowners do not need to worry about rules to maintain risk-free property ownership. Consequently, hiring lawyers is unnecessary to ensure you meet government requirements.

Whether you’re from a long residential property career or have never invested in real estate, CRE can be a brilliant place to put your money. But why commercial real estate? Here are 11 reasons you might want to consider it for your real estate portfolio.

1. High income potential
   The biggest reason to invest in commercial real estate is its potential. Commercial buildings come with higher rents and price tags and, thus, a higher potential for returns. Instead of making a few hundred dollars on a rental home every month, you could make thousands, tens of thousands, or even more if you choose suitable properties.
2. Tax benefits
   Commercial real estate investments also offer tax benefits. First, you have depreciation, which allows you to deduct a portion of your property’s value from your taxable income each year. For many investors, this reduces the total tax burden quite significantly.
3. Less competition
   Residential real estate is incredibly competitive — especially right now — which has driven prices upward for some time. CRE, on the other hand, is seeing an opposite trend. The dollar volume for commercial real estate in the U.S. was 57% lower year over year in the third quarter of 2020. So, it should be easier to find a commercial property right now, especially compared to other assets on the market.
4. Plenty of investment opportunities
   Commercial real estate investment options run the gamut: You can invest in a full-scale mall or high-rise office building, or you can keep it small, putting those dollars toward a single storage facility, an industrial warehouse, or just one condo community. There’s a lot of flexibility in what you can invest in and where you can do it.
5. Less turnover
   If you’re from the world of residential real estate, this will probably excite you. Unlike apartments and single-family rentals, commercial real estate doesn’t typically operate on one-year lease agreements. Instead, most tenants sign three-year contracts at minimum. This reduces turnover (and the associated hassle and cost) and helps ensure stable cash flow for your business.
6. More help maintaining (and improving) your property
   With commercial properties, the maintenance, upkeep, and improvements generally aren’t all on you. For one, many operate using triple net leases. These put most property-related expenses on the tenants’ shoulders — things like taxes, insurance, maintenance, and even utilities.
   On top of this, most tenants are generally more invested in keeping up the property than your standard residential tenant. Since they’re a business — and likely trying to market to clients of their own — they’ll be more dedicated to keeping the building in good repair. They might even make some improvements to the space that increase your property value over time.
7. 
   Fewer problematic tenants
   Tired of dealing with residential tenants who won’t pay up or will leave the place in shambles after their lease is up? Are you sick of tenant disputes and renter complaints? With commercial real estate, things are usually a bit more professional.
   Since you’re working with business owners who have reputations to protect and dollars on the line, they’re typically more careful about working with landlords and following the rules. This results in a lot less hassle for the investor/property owner.
8. More off-hours
   Please don’t confuse my words here: CRE takes a lot of work. But how many hours are you getting calls from tenants or heading up to the property? They’re a lot more limited than in the residential world.
   In the commercial sector, the majority of tenants operate on a typical 9-to-5 schedule. This typically means more “time off,” in the sense that you can be away from your phone and not on call for more hours in the day.
9. A more diverse portfolio
   If you’re already heavily invested in residential real estate, CRE can be an intelligent way to diversify your portfolio. As 2020 taught us, you never know what will happen — with the economy or in the world. So, having your investments spread across different assets is one of the wisest moves you can make in the long run.
10. Good deals may be on the horizon
    COVID-19 didn’t bring much positive news to the world, but there might be a silver lining for future CRE investors. Thanks to increased work-from-home arrangements and the overall economic downturn, interest in some sectors of commercial real estate waned in 2020.
    The dip has allowed CRE prices to decline slightly — at least in some sectors. According to the October 2020 RCA CPPI: U.S. summary report, U.S. commercial real estate prices rose at a 1.4% annual rate from September 2019 to 2020, a noticeable slowdown from the mid-single-digit growth rate in 2018 and 2019. Though prices on apartments and industrial properties rose (up 6.7% and 7.4% year over year, respectively), properties in the retail and office building sectors saw prices drop (5.3% and 1.5%). Depending on how long the pandemic stretches out, those prices in weaker sectors could fall even further.
11. It’s proven
    Finally, CRE is simply a proven, worthwhile investment. Many mega-wealthy investors have made fortunes in commercial real estate and continue to do so.

1. Evaluate its economic feasibility
2. Determine the offer price
3. Find out what the land is zoned for
4. Secure your financing
5. Begin building within zoning laws
6. Market the land/property to sell