The purchase of land can be seen as a stagnant investment by a few. However, if you compare investing in land with other investments you want to make, you will know that investing in land is one of the best decisions you have made in your life. In addition, it is a safe investment.
Buying land as an investment requires a deep understanding of the growth potential of the place you buy. Shopping next to a highway will be excellent. However, are you buying land in a saturated market? Or are you buying land in a growing market? Many of us may be familiar with the I-635 and I-75 freeway overpasses under construction. Likewise, when you buy land, you should look at growth proposals for highways and infrastructure projects. Study trends in business growth and migration. Tax policy for businesses may be something you want to watch.
Land is an excellent investment. It not only guarantees security, it also guarantees growth. It maximizes utility and has a higher return on investment than stocks or a Certificate of Deposit (CD). If you want to build a house on your land, you can. You can sell it to a developer in the event there is an increase in demand for the property due to mobility of labor or people in the area.
Let’s examine investing in land by looking at some other investment options. If you buy a CD, the return on investment may be less than the rate of inflation. So basically you may be losing money by investing in a CD. It may be better to pay more money in your payment and make sure it is applied to the principal. Now, when it comes to investing in stocks, there are very few stocks that perform very well. Many stocks underperform or don’t give the return on investment one hopes for. Unless you invest in a startup with excellent growth potential, it is unlikely that you will have a return on investment greater than the return on investment in a land investment.
If you consider the land/person ratio, the ratio shows that land per person is getting smaller every day. Population growth in the last century outpaced population growth in the previous century. The supply of land is limited. Therefore, it is valuable and guarantees a better return on your investment. Even if it loses value, you will have the property and it will slowly recover its value. With all the reasons listed above, buying land is an excellent investment.