Land

TANGIBILITY

One of the advantages of land is that you have a tangible asset that you can actually see, use, walk on, and most importantly, build on. There are no complicated concepts that investors need to understand with land, just that there is an increasing demand for land and a restricted supply for sale.

LIMITED SUPPLY

There is only so much available land. This is one of the primary reasons why the value of the asset consistently appreciates, and more importantly then that, from the perspective of value, it is highly unlikely to depreciate.

TRANSPARENCY

The value of the asset is clear and easily assessed by third parties. This is in direct contrast to many other asset classes, such as equities, futures, options and derivatives.

LOW COST ACCESS TO PROPERTY MARKET

Buying a house can easily cost £250,000. However, a residential sized plot of land can be purchased for as little as £15,000. This same land would continue to appreciate in value regardless as land prices increase due to demand vs supply.

LAND VERUSUS EQUITIES

As an asset class, land has out performed all other traditional asset classes often by a not inconsiderable margin. Nothing, not gold, oil, stocks or bonds boast the same pedigree as land, property or real estate.

TRACK RECORD

Land is a saleable commodity which has risen steadily in value over the years. It is also in limited supply – as it is not something which can be manufactured. Land’s track record cannot be disputed.

TIMING

Whilst factors such as the global credit crunch, high interest rates and inflationary pressure are causing severe hardship in developed countries now is an excellent time to become involved in land ownership in emerging economies as land is experiencing a huge upswing.