Land Investment has historically been the forte of large
development companies, rich farmers or wealthy
individuals. It can be a profitable business if proper
development of land is undertaken. Land investment is
referred to as a long term investment and with land
prices on the rise in many parts of the world, it is said to
be the safest and smartest way of investing ones money.

Capital gains can easily be realized from land when land
price increases. The most striking feature of land
investment is that investment takes place in a tangible
asset which the investors can readily put into use. It is a
branch of real estate investment which is gaining ground
as major part of capital budgeting analysis.

Real estate is basically defined as immovable property such as land and everything permanently attached to it like buildings. It is essentially at this juncture that land as an asset differs from real estate as it does not necessarily includes buildings and the attachments to the land.

Land is perhaps the most basic asset that we want to
invest in and may include vast open tracts with no
significant estate on it. The job of developing the land lies
with the developer, and with proper care to include
modern houses and the associated amenities, it will
significantly appreciate its value. Land situated close to
developed areas will cost more as opposed to those in
less developed areas. Land developed for commercial
purposes and those developed for building residential
complexes will have different prices and tax implications,
if any.

Investing in land can be profitable as there is limited
supply of land and the purchaser can really sell if he
wants to. Besides, there is the short to medium term
possibility of exceptional returns, and property values
can be readily increased by erecting modern world class
amenities as already mentioned.

Real property as opposed to personal or movable
property is characterized by the right to transfer the title
to the land whereas title to personal property can be
retained. The investment in real estate essentially
depends on the risks associated with it, that is to say,
even if the venture succeeds when the future stream of
income will accrue to the investor and the alternative
investment opportunities.

Real estate investment or investment in land can be attractive if viewed as a business opportunity; it can generate rental income, using it as collateral to secure a loan for a business venture, to offset otherwise taxable income through cash savings on tax-deductible interest rate losses, or simply from the profits garnered from its resale.

Land investment, while may not produce instant
gratification as a real estate or home purchase does, can
be extremely lucrative in the long run.


Source: www.economywatch.com/investment/land-investment.html