Land as investment is a long-term investment and as the price of land all over the world has taken an upswing, this form of investment can be termed as a safe bet. Big development companies, wealthy individuals and well-off farmers have involved themselves in land investment. However, a system for efficient development of land must be in place.
With the increase in land prices, investment in land can be very lucrative as capital gains are easily realized. Besides, land is a tangible asset and the investors can use it in their best interests. Land investment forms a major part of real estate investment. The attachments to lands and buildings are not an essential requirement of land investment and it is the main point of difference between land investment and real estate investment.
Land can be termed as the most basic form of asset. The land developer is entrusted with the duty of developing the land. Land appreciates in value with establishment of buildings and other proper amenities on it.
The advantages of investing in land over the housing market are as follows:
The value of land is influenced only by its surrounding and not the entire real estate situation
In order to sell land, a realtor is not needed
The real estate cycles in the housing market do not affect the land investors
Even if the purchased land is not put to major uses and left idle, it still ensures a good return on investments
Investing in residential lands can be a profitable proposition. The availability of facilities such as schools, hospitals and road access are very important. It is true that investment in lands may not produce immediate profits, but one is sure to gain in the long run.
The types of land for investment are
Lake Front Land
Lake View Land
Golf Course Land
An important question that remains is how to buy land. The purpose for buying land and the budget allocation need to be chalked out first. The easy availability of necessary amenities is also of utmost importance.
Last Updated on : 5th July 2016