Category: Finance, Real Estate.
Investing in real estate and land is a great option for any person who is looking for growth in their wealth in the long run.
This is because the return rate is high and the risk factor is extremely low. Today, investment in real, in several countries estate is increasing at a very rapid rate. Its price is always increasing and this is the reason for most of the investors investing in land rather than other investment options like stocks. Since the early 90 s the value of land is appreciating by close to 10 percent each year. There is a guarantee of return from investing in real estate or land. There are many people still who believe that investment trusts and mutual funds are better options.
Apart from the profitability factor, there is a great deal of excitement and fun while investing in real- estate. Investing in real estate is called the best investment option. Investing in real estate can give hands on experience on options available. A perfect investment option for a new or a conservative investor is investing in real- estate. Moreover there are a lot of things that can be learned and considered while having investment in new real- estate. In the past investing in real estate was an option that only the rich could afford.
The potential of land is great as it adhere to the theory of supply and demand. However today this is not the case as investors big or small are able to take advantage of the growing trend in profit. Due to the decrease in availability of land the supply decreases and in the process the prices of land increases due to increasing demand. Moreover, it is a renewable resource which means that land can be repurchased. Its demand will always be there as companies and people will always require land for growth and development. Due to the increase in population and continuous immigration from one country to another, the need for it to build residential houses continues to grow.
The number of divorce is increasing which means that instead of a house couples will need two houses. Apart from this people are opting to stay alone and this trend is increasing at a rapid rate. There is desperation among middle class household to have affordable housing. If one is looking for investment opportunities that are easy to understand, then real estate is the best option. There are many urban areas that are being invigorated so that business people can have room to stay. The rules of real- estate are simple. The business strategies are not complicated and one does not need to read balance sheets.
When the value of land is low one should buy it and when the price appreciates the land should be sold. There are no formulas related to risk benefit and there are no need risks that are complicated. Investing in real estate is very low in risk, profit is high and any person can buy a property depending on the price level.
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