There are certain investments that are pretty much guaranteed to make you money over time. Land is one such investment that will increase in value from the day you purchase it. In today’s economy, land is probably one of the best investments you can make.
The reason why a good investor will buy land is because he knows that land is a limited asset and that the population is not. As we continue to grow, the amount of land available decreases. The land that is available will become ever more valuable as more land space diminishes. It doesn’t matter if it’s industrial, farm or residential, land space is valuable.
The decision to buy land is a smart one when you consider the return on investment. Land prices have doubled every decade, making it one of the hottest commodities, so much so that banks are basing loan decisions based on land as equity. Land equity is valued at a higher rate than home equity, so if you own land then you are in a good position on the monopoly board in today’s economy.
Land prices are solid right now and sitting tight, with not much competition from other investors vying for the same pieces of land. This makes it a great time for anyone who has enough capital to buy land, to do it at a great time. When the economy rebounds, the land prices will start to increase again at a steady pace and you will be in one of the best positions you can be in.
While buying a home can be a necessity, when you buy land it can be for pure profit. Unless you are buying the land to build on, you are setting up an asset for future monetary benefits. Buying land to build on is a good idea as well, but once you put a building on it the value of the land itself decreases. It is the land that is going to be the most extinct and the most valuable in the future, not homes themselves.
If have had the thought to buy land, do some research and make sure to buy in a good area that is sociology-economical. Remember that when buying land, location is one of the most important factors along with size. Without anything on it to give it value, it is where it is located that determines its worth. Choose carefully, research the area, and make sure it is a decent size for someone to build on.
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