I see a few ways: 1) time it right 2) buy big chunks, cut it up, and sell the pieces, and 3) Identify land that is in the growth path of development, but is not recognized as such by others.
My parents purchased some land together with two other families back in the early 80’s. This was on the outskirts of Tucson. When they bought, it was a long way from anytyhing but Tucson grew right past it and it ended up being a nice part of the suburbs so they did well. I’m not seeing opportunities like that anywhere right now.
I also feel, as a guy who likes to build stuff, that there is a chance to save money on your primary residence by buying a lot and building a home on it – to live in. In a way, that is a land investment as it allows you to avoid developer-markup on both land and structure.
Buying a chunk of land in a fairly well-populated area just doesn’t seem like a good investment. It will be priced to the market and the only way to make money is for the market to go up.
But if you see some compelling reason why you think a piece of land will appreciate when a whole lot of real-estate is languishing, then do it.
If you feel that real-estate is a growth investment, it it makes sense. However, regarding items 1, 2, and 3 above – I just don’t see the economic climate supporting any of them for several years.
