Land which requires large one time investment could give you better return in long term in comparison to all other investment options. Things you should Take Care at the Time of Land Purchase
- Purchase your land in those towns where value of land is not at its pick.
- Invest in those areas where some development works are undergone by government or private companies.
- Road side & railway platform side land secure more value for the future due to good communication facilities.
- Beware of cheat fund companies at the time of land purchase.
Advantage of Land Investment
- Higher appreciation in the value: Increase in the value of land is faster than other investment options and gives higher return.
- Tax Benefits
- To take loan from bank: Bankers give loan easily to the person who has an asset base .You could keep your land with the bank to take loan.
- It is a safe investment as risk factor is low
Disadvantage of Land Investment
- Costly to Buy, Sell and Operate
- Requires Management to get regular return
- Liquidity is not easy: You could not sell your land in 1 to 2 days as buyer requires a large amount to buy it from the seller.