If anyone asks about the most overlooked and misunderstood investment method the answer would be a land investment. Land property tends to give a great rate of return, and it increases exponentially with time and even more in rural and underdeveloped areas. It provides the one investing in it with a tangible asset that can be used in many other ways too like a plantation area, space for tower setup, etc.
There are many reasons why land investment is said to be a great investment. One can be ascertained about an excellent rate of returns, tax relief and more. Rental properties or investing in the land at times even give more return than the stock market as the stock market is a volatile concept. Here we are giving the top 5 reasons on why one should do land investment:
Land has a high tangible asset value:
The great thing about land is that it will never go invaluable. Other modes of investment might be volatile or depreciate with time. In case of development activities near one’s land like a new metro project coming up, or mall being set up, etc. the price of lands have even gone double of their basic value.
Real estate values will always increase over time:
As per the history of investing in rental properties and land, the longer one holds it the greater are the chances to make more money out of it. Giving it more reliability, the land has always come out past bubbles of market fall or another such economy slowdown.
Investing in the land also diversifies one’s portfolio:
Diversification is an important aspect of any investment. The better the diversification the lesser is the risk associated with it. This is so as diversification of investment spreads out the risk. As already stated that land can be used in multiple ways to gain capital, its risks get lowered to a great length.
Land investment has very little or no competition:
The value of land doesn’t much depend on the nearby competition it has. Land at a similar place has the same set of offerings and usage, hence the price is also similar. The final thing might just depend on negotiation skills.
Variety of options available:
There are many options for different types of land available like, agriculture land, industrial area, residential plot, etc. One may invest according to their budget.
One must do good research before investing in any plot of land and check about legal implications.