Why buying lands making more sense than locking your money in banks
Investment on land is becoming a very profitable commercial initiative. It yields a much higher return to the landowners and encourages them to channelize in other profitable business ventures using the land. Land is such a fixed asset whose price will always in the sharp rise with the passage of time. Even a small piece of land has the potential to generate sufficient higher profit margin for the landowners. Many of them have become prosperous in this manner.
Therefore it can be properly said that investing money in lands can yield higher returns compared to that of banks and other financial institutes. Saving the money in bank though ensures financial security but it takes a very long period of time for the depositor to receive the principal amount with interest. The main reason is high maturity period and even if the depositor receives the stipulated amount the returns is not sufficient. In this scenario, it is quite applicable to invest the money in the business of land than to pile it up in banks. Land business provides ample opportunity of making money through lease and rent besides, selling it to builders
Besides, there are certainly other advantages that can be enjoyed by investing in land. These benefits are enshrined below:
Explosive growth due to limited opportunity:
Every land has fixed boundary and so there is no scope for increase in the area of the land. However, this does not prevent the increase in prices with the subsequent passage of time. Many landowners are now selling their vacant land to renowned builders and construction companies. These builders and construction companies are quite expert in obtaining profits even from a small piece of land.
Low maintenance compared to flat investment:
Land whether barren or fertile does not include any maintenance cost unlike flats or other residential establishments. Flats and residential apartments do have a high maintenance charge that involves repairing and painting. Land does not involve any such maintenance charge if it is for sale. Owners has to only install a fence to retain the boundary of their plot of land.
Greater chance of value increase during boom time:
When the overall economy witnessed a booming phase then the prices of fixed commodities like land also increased to a surplus extent. Prices of land become double because of speculation. Landowners now get the surplus opportunity to sell their lands to real estate companies at a comparatively higher price than the actual market price. The price becomes a dominant factor in the open market economy during the period of boom. However, fair dealing is essential to check the price imbalance of the land.
Opportunity to enter into a joint venture with a builder:
Land investment allows the landowners and other shareholders of any plot of land to enter into the real estate business in collaboration with any renowned builder or real estate giant. In this way, they can enjoy the spoil of being associated with such functionaries. Here the owners and other stakeholders to get the opportunity to enjoy the profit of selling flats and apartment blocks to a group of wealthy clients along with the builder.
God Does not make it anymore:
Opportunities do not come automatically but need to be created by all means. The same rules apply here while investing in land. Land is a great gift of God and this fact is now being proved in reality. Owners are not only selling land for profits but also leasing it to enjoy monthly instalment from the concerned party. Even for holding any events, the owners do charge a decent rental charge from the authorities to lend their piece of land
Best long-term investment on earth:
The demand for land, unlike other commercial commodities, never diminishes and on the contrary will always be on the rise. So it is wise to invest in land to secure a stable financial position in the market. Many young people are now entering in this business to enjoy a stable financial security for entire life.