Why Real Estate Land is Valuable to People?
Land is land and if you get it cheap, it usually can do nothing but rise in value. Some of the biggest bargains around today are in raw land.
The major reason why land is valuable to people is:
Land is limited-availability commodity because there is only a certain amount of land available and there is growing demand for land almost everywhere.
Whenever you have a situation in which there is only a limited amount of a commodity available, and a growing demand for this commodity (such as land), the price of that commodity will rise. And the longer such a commodity is held, the higher (in general) its price will rise. So you can’t lose on raw-land investments if you:
o Pick your land carefully, after youo Analyze the direction of development,o Study the speed of development, ando Wheel and deal for the lowest price.
Towns and cities usually grow in population as time passes. This growing population needs space-that is, land. To satisfy the demand for more space, almost all communities expand horizontally. To expand horizontally, or on the flat, land must be developed, that is, subdivided into:
o Lots, witho Access roads ando Side streets, havingo Sewers, ando Water supply, ando Electricity
If you can predict the probable direction of horizontal expansion of a town or city, you can make big profits by:
o Buying raw land in the path of the community growtho Holding the land until the growth reaches youo Selling out to developers at a suitable price
Or you can, if you wish:
o Hold onto the land, instead of selling ito Develop the land yourselfo Sell the developed raw land to builderso Go into the construction business and build houses or other structures on your developed land
Thus, you can see that your potential is almost unlimited – if you buy in the direction of growth.