ADVANTAGES OF INVESTING IN LAND (EXPLANATION) 1. Higher profits Property owners are millionaires in their own right, no matter how small the property appears to be – futuristically! A property worth a 100,000 today will be worth over a million in a few years time. Land increases in value due to demand outstripping supply. 2.Hedge against inflation The rate at which property prices appreciate is normally higher than the rate of inflation in an economy, therefore property values tend to increase over time increasing the worth of one’s wealth. 3.Saving strategy Due to the illiquidity of real estate, owning a property allows one to develop a rigid saving culture whereby money is put in purchasing a property which appreciates with time (capital appreciation). 4. Acts as security for a loan(s) Owning a piece of real estate allows one to get access to bank loans almost to the worth of the property. These loans can be channelled into other money-generating avenues such as running a new business altogether. There have been instances where property owners approach a bank for a small loan and the bank advices/allow them to get a bigger loan due to the high value of the said properties. 5.Sense of achievement The psychological well being achieved from owning a piece of real estate is a worthy ideal to pursue. I come across first-time real estate investors from all walks of life; most invest small and some invest big – they are all winners, for once they set on an investment journey, they never turn back. Marshall Field once said that ‘Buying real estate is not only the best way, the quickest way, the safest way, but the only way to become wealthy. 6. Finite resource Land will not always be there. This makes it an attractive investment due to increase in demand while there is a shortage in supply. 7. Land is tangible While banks are experiencing credit problems and paper value is at serious risk, you have your physical investment intact. If anything, it’s always great to have an asset that you can actually see, visit and walk on. The security you get from a physical investment is simply incomparable to be continued.....
Posted on: Mon, 01 Sep 2014 11:25:35 +0000
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