The superiority of land as an investment

Land, as Mark Twain an American Entrepreneur would say is limited in supply since it is not being manufactured anymore. For sure, it cannot be made. However, as a prudent investor, one can add value to the limited parcel of land by putting it into various uses to maximize its profits. This is why we refer to land as being superior; though it is scarce, it can be manipulated to be highly productive.

The superiority of land as an investment

Looking at it from the physical perspective, the land is permanent in that there is no possibility of dislocating it or even any part of it. It retains its position for eternity. It is also durable in that it is not easily destroyed. A landowner doesn’t have to dismantle the parcel of land even if he or she does not require it but to transfer it to an interested party. The diversity of the land also makes it to be distinct since at any point there can be no identical parcels of land. Each is unique in its way. Its physical complexity makes it outstanding because of its plurality of parts. A parcel of land can consist of buildings, plantations, or any other structures.

Owing to the land being a source of income, it has a variety of advantages with regards to this economic aspect. The land is scarce in that the amount of land available cannot meet the demand because it is always limited in supply. Therefore, the land improvements have to be modernized to satisfy the demand. The economic land use is majorly determined by its location due to its neighborhood characteristics. This leads to the interdependency characteristic of land that once a parcel of land realizes its function, it will influence the use of other properties in the locality. The land also operates in an imperfect market where the prices are set by the price-makers and not by supply and demand as should be.

Last but not least, land has a financial significance. It has capital growth since land always appreciates and that means the security of capital because investing is less risky as compared to the probable returns.

These are the reasons why you should consider purchasing land. It is probably the best investment on earth.