Do you want to venture into real estate? Asked Louis Glickman, a real estate investor and he will tell you that, “The best investment on Earth is earth.”
Land as an investment choice is becoming popular day by day. It is a tangible investment: you can see it, feel it, own it. It is the first source of the wealth.
Individuals need land to set up residential homes, carry out commercial activities such as agriculture and buildings for business and rentals. Organizations that produce goods need a physical address to operate in, set up plants, and warehouses. At any point, land is needed.
Why should you invest in land?
High resale value
Land has attractive returns, compared to returns from other investments such as stocks which are viewed to be of high risk. Its value is always appreciating, and, because of its limited supply, there is high competition in the world to get a piece of land and thus rise in prices.
Low management costs
Land does not need much of your involvement. Setting up a big, medium, or small business needs lots of cash, some even to a tune of more than million shillings. Factor in the first capital and recurrent expenditures and keeping it afloat before it picks up. For land, after purchase, you need to fence it, trim it regularly, and carrying out minimal surveillance.
Low investment costs
The price of land is dependent on factors such as location and its use. Land within and proximity of urban centres is usually expensive due to the infrastructural developments such communication network and the high population in demand. However, away from the urban centres, there are distant areas whose lands are still vacant. Vacant land is always affordable compared to the lands that are already occupied.
Multiple uses
Land has varied uses. It can be customised for any use now or in future. You can use it for construction purposes such as building your dream home, rental houses, or commercial premises; agricultural purposes such as crop production, poultry and livestock farming depending on its size.
Land appreciates daily
As urban centres expand, land in the neighbouring areas becomes more and more valuable because of the potential for it to be bought by investors who want develop properties to meet demands of the increasing population. Sometimes although land value may increase slowly, the prices can increase overnight especially when the government zones and begins to set up infrastructures such as roads and business premises.
Limited resource
Nobody has ever produced land, and no one will ever produce land. And since God created the universe, he has never expanded it. As the population grows day by day, land as a resource is becoming scarce and scarcer. And therefore, it becomes more attractive day by day.
Long term investment
Land investment can be a great long-term investment for those who desire to invest for projects that will yield good income in the coming five or ten years. All you need to do is secure your parcel of land now, wait and sell it after five or ten years. You can reap maximum.
Land is permanent
Land as an investment is not easy to destroy. The other investments are destructible, but land cannot be destroyed. Once used, it can be reclaimed for other purposes.