How can I use my empty land to make profits before I put it to use? This is a question that comes up most of the time when dealing with clients. It is also a question that rises within the real estate industry because we have to advise our clients accordingly.
The rule of buying land is Buy and wait but then the question of what to do in the waiting is inevitable. What if we told you there are many ways to make profits from your empty land as you wait to either build or resell? Right depending on where the land is located, its size, and the available resources you can maximize your land and earn passively or sometimes lucratively. In this article, we will explore a number of ways to do that.
1. Rent The Space Out For Events
Events are a big deal in this country and every other day people are on the lookout for a ground they could use. If you have a large piece of land, you could rent it out for events such as concerts, birthdays, and weddings and earn from it. You could just charge for the venue as it is and charge a flat rate.
However, you could make it an even more profitable business by buying tents, tables, and chairs and then renting them out as a package. To do this kind of business you will only need to plant grass and trim it when necessary to make the ground attractive.
Crop farming is also a great way to maximize your land and make profits. This is of course dependent on the soil and climate of the area your land is located at. You can, later on, sell the crops and vegetables and make money.
Moreover, you can start an animal farm. Rearing animals such as cows, sheep, goats, pigs, and chicken is not as physically involved as crops and can make you some money if you sell the animals for meat or to other farmers. You could also learn the animal-keeping art and offer to teach other upcoming farmers at a fee.
3. Lease out the land
There are people who cannot afford to buy land and they need one to farm or do some other businesses. moreover, there are also people with their own land who need more. You can lease it out to such people at a fee you decide depending on its size and the investment you would like to make out of it.
4. Use It as Storage Facility
If the land you own is in close proximity to factories or large businesses, you could use it as a storage unit. You could either choose to build the warehouses and collect rent from the companies or sell them the land to build.
5. Plant Trees
Timbers and posts are needed almost every day by factories, carpenters, and even the Kenya Power Generating Company. As you wait to develop your land, you could ring the perimeter with trees to serve as windbreakers or even plant the whole land trees. Then later on when the trees mature, you can sell timber, wood, and posts.
6. Temporary infrastructure business
There are businesses that do not need permanent buildings such as recreational centers. You could use your empty land by having great landscaping around it, sitting areas with an outdoor catering area. People would come to rest and take their meals there. You can choose to charge an entrance fee and food or only food.
You can also put up a children’s play area. The modern-day parent is very intentional about baby-day out and this is seemingly a lucrative business in this day and age. Putting up movable swings, slides, bouncing castles and inflatables would really make you some good money. Selling out the business later could make you even more money.
The land is an appreciating asset. This makes it very valuable to the owner since they can use it as collateral to get financing from financial institutions such as banks and SACCOs. Especially banks are very flexible in offering loans with land as collateral.
In addition, if you would wish to develop the land but you have no money, you could go to a financial institution and make a deal with them. Based on the commercial viability of your land, they could fund the project and you get to agree on how you will repay them.
Do your homework before you settle on how you want to put your empty land to use for profits. You could ask for guidance from family, friends, or people who have done the same. This will help you settle for an option you won’t regret.