Why Invest in Land?
Parmdeep Vadesha
July 02, 2008
No one puts it better than American literary great Mark Twain when he said, "Buy land, they are not making it anymore."
Land investment is one of the most stable medium to long-term investments that you can ever find. Gains from investing in land are plain to see. Besides being a very tangible asset that you can see and use, land values rarely depreciate. In contrast to property prices, land value has increased by over 800% in the past two decades. Furthermore, UK laws permit any nationality to purchase land.
Prices of land are on a continued hike and experts predict that it will only continue to soar. Many investors are now seeing land as a much better investment offering greater returns compared to property or the stock market. Now, more than ever, is the best time to invest in land.
Farmland in the UK are at their all-time highest price. The price increase is brought about by the increased demand due to soaring food prices and that more and more people have realized that farmland is a good investment. The main attraction of buying farmland in the UK is the relatively easy method of acquisition. The buyer merely has to pay for the land and obtain a certificate of ownership from the land registry. Farmlands have not only attracted property investors, but many wealthy urban dwellers as well who are looking for a place to relocate.
Not to be outdone, commercial land prices are also increasing. Despite the increase in interest rates, some commercial sites are selling at up to 20% above the asking price. Most of these sites are small brownfield plots and neglected former industrial sites. Despite the often derelict condition of these lands, small sites are selling very fast due to the fact that there are not many of them around as of the moment. Most of the buyers of these types of land are small businesses, which have now seen the investment potential of land as an asset.
Residential areas are also seeing a fast-appreciating growth in land prices. Though the most expensive land in the UK is still unsurprisingly in London and in the South East, prices of the traditionally cheap lands in Wales and in the North are slowly catching up. Residential land in almost all areas is now widely seen as a viable investment – just as good as investing in property – considering the widespread shortage of housing and land supply.
Land has always been – and still is – one of the best forms of investment. Land is a finite resource. With England being a very small country, supply will eventually run out and prices could skyrocket. Since it is a tangible investment, you can always make use of land – whether for raising crops and animals, starting a business or building your home. Lastly, investing in land is solid and easy to understand. Compared to investing in precious metals for example, land prices are very transparent and it is very clear when the prices are going up or down.
Land investment is one of the most stable medium to long-term investments that you can ever find. Gains from investing in land are plain to see. Besides being a very tangible asset that you can see and use, land values rarely depreciate. In contrast to property prices, land value has increased by over 800% in the past two decades. Furthermore, UK laws permit any nationality to purchase land.
Prices of land are on a continued hike and experts predict that it will only continue to soar. Many investors are now seeing land as a much better investment offering greater returns compared to property or the stock market. Now, more than ever, is the best time to invest in land.
Farmland in the UK are at their all-time highest price. The price increase is brought about by the increased demand due to soaring food prices and that more and more people have realized that farmland is a good investment. The main attraction of buying farmland in the UK is the relatively easy method of acquisition. The buyer merely has to pay for the land and obtain a certificate of ownership from the land registry. Farmlands have not only attracted property investors, but many wealthy urban dwellers as well who are looking for a place to relocate.
Not to be outdone, commercial land prices are also increasing. Despite the increase in interest rates, some commercial sites are selling at up to 20% above the asking price. Most of these sites are small brownfield plots and neglected former industrial sites. Despite the often derelict condition of these lands, small sites are selling very fast due to the fact that there are not many of them around as of the moment. Most of the buyers of these types of land are small businesses, which have now seen the investment potential of land as an asset.
Residential areas are also seeing a fast-appreciating growth in land prices. Though the most expensive land in the UK is still unsurprisingly in London and in the South East, prices of the traditionally cheap lands in Wales and in the North are slowly catching up. Residential land in almost all areas is now widely seen as a viable investment – just as good as investing in property – considering the widespread shortage of housing and land supply.
Land has always been – and still is – one of the best forms of investment. Land is a finite resource. With England being a very small country, supply will eventually run out and prices could skyrocket. Since it is a tangible investment, you can always make use of land – whether for raising crops and animals, starting a business or building your home. Lastly, investing in land is solid and easy to understand. Compared to investing in precious metals for example, land prices are very transparent and it is very clear when the prices are going up or down.
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