Buying land can be seen as a stagnant investment by few. However, if you compare investing in land with other investments that you want to make, you will know that investing in land is one of the best decisions you will make in your life.
Buying land as an investment requires a deep understanding of the growth potential of the place you buy in. Buying land 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 know the I-635 and I-75 highway flyovers under construction. In the same way, when you buy land, you should see the proposals of growth for highways and infrastructure projects. Study the trends in business growth and migration. Taxation policy for businesses may be something you want to observe.
Land is an excellent investment. Not only does it ensure security, it also ensures growth. Land maximizes utility and has a greater return on investment (ROI) than stocks or a Certificate of Deposit (CD). Should you want to build a house on your land, you can do so. You can sell it to a developer should there be an increase in demand for the property due to mobility of workforce or people into the area. Let us take the DFW real estate area. The DFW real estate market has Dallas homes for sale that have excellent amenities and the land in the DFW, Texas real estate area is valuable considering the growth potential of the metroplex. The development of highways, infrastructure projects and increasing connectivity of the local transportation has increased the value of land in the metroplex.
Let us examine investment in land by looking at a few other investment options. If you buy a CD, the ROI can be lower than the inflation rate. So, you may be basically losing money by investing in a CD. It may be better to pay more money to your land payment and ensure that it applies to the principal. Now, regarding investing in stocks, there are very few stocks that perform exceedingly well. Many stocks underperform or don’t give the return on investment that one hopes for. Unless you invest in a startup with excellent growth potential, it is unlikely to have a ROI that is more than the ROI on a land investment.
If you consider the ratio of land/person, the ratio shows that the land per person is reducing every day. Population growth in the last century outgrew the population growth in the century preceding it. Land is limited in supply. So, land is valuable and ensures a better return on your investment. Even if the land loses value, you will have the land and slowly the land will regain its value. Land is a safe investment. With all the reasons listed above, buying land is an excellent investment.