Land Vs Developed Properties: Which Is The Best Investment Sector?
07-10-2014
By: Christopher
One of the best ways for a consistent flow of income has been the investment. It has proved to provide excellent profits and incredible ROIs. This method of making money has been in process since many generations. In fact there have been many people across the globe who established their own empire through investment. It has gradually become one of the biggest sectors in the global market today.
Not every investment is done in the market but some are also done personally. Eventually there are many areas where investments could be done. One of them is the property investing. This is certainly one of the boosting aspects of money investing. Due to the increasing civilization, the availability of land has progressively gone low. Villages are converting into cities. Tall sky scrapers are now the modern trend of housing patterns.
Cities are getting into concrete jungles and the developments could be seen everywhere. This factor has reduced the availability of land. The shortage has resulted in the high rates of lands. People in dire need are ready to pay the amount whatsoever to acquire the land. This further encourages the investors more to make investment upon this sector for remarkable ROIs and ultimate profits.
Well, now as far as property investment is concerned, then this field could be divided into many categories. As such, real estate investment is one of the most popular forms of land investment. Investing on real estate could be something very lucrative and advantageous. Evidently, a real estate is divided into two parts which include commercial as well as residential sectors. As this sector is on a rise at present, hence it provides the best option for investors.
One of the other aspects of the land investing is the property fund investing which has also come out as a better land investing sector. In such a form it has also emerged as a perfect alternative of real estate investors and developers. As such it has been found that real estate properties perform better than that of the stock market. However, some investors consider property funds to be better over developed real estate.
The Reason: One of the reasons behind this fact has been the financial crisis which occurred during 2008, due to which there were no profits from the traditional investment sectors. As a result the investors found real estates to be an acute source for excellent ROIs. With the increase in growth of population, the requirement of land has also been increasing during the recent years, which has resulted in high rates of the lands.
The Difference- In general, a real estate could be categorized into various forms including built properties and raw land. Some of the investors like to choose the developed properties thereby investing upon the developers who manage the construction and sales of homes and commercial structures. While, some other investors look out for investing upon the raw land which could be either for agricultural or residential.
Land Investment Advantageous??
As such any form of property investment is lucrative for an investor, but land investment comes out to be a little more advantageous than its counterparts because of the following reasons-
•Flexibility to market needs
•Reduced investment in development
•Enhanced cash system.
These 3 attributes help to make land investment beneficial over other forms of property investment.
To summarize, the property fund investors could fare better than that of the real estate developers due to the involved attributes into this system.