land is very good business to any investor,it is precisely a free gift but it economical.this days our government has propose some funny regulation to your personal land so some proffesional skill needs to be taken On the other hand, if you bought land, you’d earn no interest or dividends, and after 10 years you’d have a piece of dirt that you’ve been paying taxes on. Will your land have gone up enough in value to match the returns you would have earned on a financial asset?
In addition to those significant financial issues, land also can be contaminated, undevelopable or have significant development restrictions, among other issues.
Who might consider land?
Land may be a good investment for home building companies and long-term corporate land investors with extensive development and entitlement skills and experience, and significantly diversified portfolios of land to reduce their overall risk. But for small investors, it’s a high-risk gamble with little chance of earning a fair rate of return. There are much better investment opportunities, such as stocks, bonds, mutual funds, rental properties or, quite frankly, heading to abuja for the weekend (where, by the way, many an investor has learned some tough land investment lessons in the past decade.Land is speculative
Here is the issue with land: It’s a 120 percent speculative investment. You are 100 percent hoping that the valuewill go up to provide you a fair rate of return. And it might. But will it go up enough to provide you a fair rate of return for the extreme risk that you are taking holding that land?
Here’s the risk
Let’s say you buy #1,000000 worth of land, and you pay cash. It’s still going to cost you money each month to cover property taxes and insurance. And, here’s the kicker: It’s also costing you the opportunity cost of capital.
You probably took #1,000000 out of your mutual fund account, or other financial asset, to buy the land. And when that money was in the financial account, it was probably earning interest — let’s say 5 percent — but now it’s not earning anything because you took it out of your account to buy some dirt. So you’re really effectively losing 5 percent in wealth each year because you’re not earning that return. Unless, of course, the land goes up that much in value plus compensating for property taxes, insurance and other annual costs have you a single thought what the price of fixed asset would be in the next ten years so when will you start buying your asset