Investing in Land

Is land a safe long term investment?
　
Land is a commodity, it generally does not decrease in value, as shown in the news property can de-value as can shares. Land values have increased faster than house prices in recent times and most experts will tell you that land prices will continue to increase as more and more land is taken and there is less available for development and sales. So as demand increased the supply with eventually and inevitably decrease pushing up the value of land. Making investment in land one of the safest long term investments with a very minimal risk to any potential investor, some investors choose mutual funds, investment trusts, stocks, equities, and hedge funds, but land has proven itself to be the most lucrative source of investment. Within the last year average farmland prices have increased by 30% and over 130%since the early 1990’s which just shows the growth potential. And in the last 20 years it has increased by a massive 920%.

Once land investment was just the focus of large multi national businesses but it has become so much more accessible and many smaller investors are seizing the opportunity now and investing in land.

Land investment can be considered a safe long term investment for many reasons, population growth has continued to expand, increasing by nearly 3 million in the last three years, immigration has also increased massively in the last few years as more and more countries are accepted into the EU. The increased immigration has contributed to around 60% of the population growth in the last 20 years. And experts believe it will continue to increase by another 3.4 million in the next 20 years. So the demand for land will increase substantially. Divorce rates have also increased by around 30% in the last 20 years from 148,000 to 200,000. People are also choosing to stay single and getting married at a much later time in their lives. There is a lack of homes through out the UK now and it will only increase as the population increases the demand for and property will also increase and hence the value will.

The key is to find vacant and unused land that is near to an area that will one day be developed, so an investor can buy for a reasonable price, hold on to it and sell once a development has taken place for a huge profit, this is called Land Banking and has proved very lucrative indeed for investors.