Ideas For Making Money From A Piece Of Land

A piece of land is a great asset, and you can make a fortune from owning one. Many people start their real estate investment career by buying land. There are various ways to make money from your land without having to worry about developing it.

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If you own a piece of land and are looking for ways to make money from it, then you are in the right place. You can be making money off your undeveloped land while saving up to develop it or waiting for its value to appreciate so that you can resell it. Follow as we explore some ideas for making money from land.

Divide And Sell Your Land

It is one of the common types of real estate business that people engage in, and that might be because it is pretty straightforward. There is this notion that land will always appreciate, and it is correct. Once you own a large piece of land, you can sell a fraction of it for more than the price you bought the whole land.

For example, you can buy 10 hectares of land for ₦20,000,000, and after five years, sell 5 hectares from it for the same ₦20,000,000 or more, depending on the prevailing market conditions. You have just succeeded in getting 5 hectares of land for free.

Rent Out Your Land For Events

You can generate significant revenue from land without selling it or even developing it. Just rent out your land to people to hold their events. There are so many events for which people are ready to rent your land. For example, a new church that needs a venue for their weekly activities until they can acquire a place of their own can rent your land.

Also, people rent open fields for wedding ceremonies, birthday parties, crusades, campaigns, etc. What makes this idea great is that you can implement it with just a plot of land and make as much as ₦100,000 per event or ₦4,000,000 per year.

Fence Your Land and Rent it to Businesses

If your land is along a major road, you can rent it to car dealers, start-up business owners to use as office space, schools, hospitals or any other business that can use a temporary structure. Companies that use mobile or temporary offices are likely clients for this type of arrangement. You can make as much as ₦5,000,000 per annum from your land without having to spend money on maintenance.

Lease Your Land to Temporary Residents

If you own a large piece of land that you might not develop in, say, ten years, you can rent it to people to keep their mobile homes or construct temporary structures. It is a good idea for making money from land, particularly for lands located in urban cities. It allows you to earn money from rent without financing the construction of the homes yourself.

It's just like constructing several residential buildings and renting them out to tenants. The only difference is that it is your tenants that built the homes themselves.

Renting Your Land To Farmers

You can lease your land to farmers for the period you're not using it. Letting your land to poultry and fish farmers ensures a steady inflow of cash because they'll be using it for a long time. While you might not make a lot from this arrangement, it has the advantage of shielding you from the cost of maintaining the land for the period you're not using it. Once you are ready to use the land, inform the farmers to evacuate the land. Be sure to notify them early so that they will have enough time to prepare to leave.

Farming On Your Land

It is an excellent way to generate real income from a piece of land. That farming can be lucrative is a known fact, and there are many things to farm on your land. From planting food crops like corn and watermelon to rearing animals like snails, pigs and squirrels, you can generate a steady cash flow from land. With farming, you can earn significant income weekly, monthly, bi-annually, yearly and so on.

For more information on real estate investing, read our Beginner's Guide to Real Estate Investing to get an overview of the real estate industry. Of course, we would love to know your thoughts and other ideas of making money from a land in the comments section below.