Sunday 26 August 2012

The Popularity of Land Investment Is Growing

The Popularity of Land Investment Is Growing

So what’s the difference between Realtors and Real Estate Investors? The piece of paper the Realtor has. No, seriously though, a Realtor has the right to sell property for somebody else. A Real Estate Investor buys and sells their own properties. Now, the main difference between a Realtor and Real Estate Investor is that Realtors charge a lot for their services, and their prices tend to be on the high side. This is why Land Investment Market has increased; People are sick and tired of the tricks Realtors play, and decided to start buying properties on their own.

Sure, we are in a Housing slowdown right now. However, the price of land is never parallel with Real Estate Houses. Real Estate goes up and down in 6-8 year cycles, as many of you already know. What many of you might not know is that land prices tend to always appreciate. Land is similar to oil in the sense that it’s a finite commodity. However, at least it’s possible to make synthetic oils and stuff like that. Land, however, is obviously not being made anymore. Once all the land in this planet runs out, there will simply be no more land, and your piece would climb drastically in value.

Many people, including some of my clients, have come to realize that it’s less expensive to buy a residential lot and build a house than simply just buying a house. This means two things. First, you can build the house on your lot and turn it into a rental property. Or, you can simply cash out on your existing home, and relocate to good, clean areas including that new house you bought on your multi-acre property!

There are many things you can investment in. But how safe are these investments? Let’s break it down:
Stock Market- Sure it’s lucrative, but only if your at the top of the company. Your dealing with money that doesn’t exist when you play the stock market.

Mutual Funds- Safer, but the return isn’t as good.

Bonds- Safe, but again, the return isn’t good.

Houses- This is tricky as it all depends on the location.

Land- It’s appreciates in value, can’t be destroyed in the case of a natural disaster, and is the first step involved in getting a place to live.

These are just a few of the reasons why land investment has increased in popularity. Grab that property you’ve been eying before it’s too late!

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