Land or stock, which do you think is better investment? Basically it depends a lot on your lifestyle, who you are, your personality and preferences. You must furnish these points before making every personal investment to get returns that you expect. Here we can analyze both these investments:
Land Investment: There are other costs when you buy vacant land including annual taxes. One has to come up with profitable ways to make cash from the land like developing it, leasing to a developer or for fairs, parking, storage etc…
Stocks Investment: You buy a small part of the business when you buy company stock shares. If the company profits, you will get a share of the profit depending on the stocks you own.
Advantages of Land Investment
You put your money into something tangible when you invest in land. You can see and touch it or develop it into something more profitable. Mentioned below are the benefits of land investment:
There is higher chance of being cheated when buying stocks as compared to land as you can personally inspect and see the land. While you can research and get information when buying stock which is mostly made available by the stock owners.
Traditionally inflation dictates land prices and when it rises, the value also goes up. There are several factors that influence the price of stock prices, some that are known while others unknown.
As the quantity of land cannot be increased, it is becoming a very valuable resource. Land is an essential commodity required for playing, working and living. The value of stock is based on how important or useful the service or product is at that time.
Investing in Land VS Stocks in Present Market
It is true that stocks can typically generate better profit as compared to land over a long period, but that requires a lot of patience and discipline. Many investors sold stocks during the Credit Crunch in 2007-2009, after the market fell. This was the time to actually invest in more stocks.
The basic thing here is that like most kinds of investment, purchasing land will have its ups and downs. But you have the option to develop your land into a profitable option like residential communities, farming plots, commercial space or apartments etc. You have to decide which is best for you… invest in land or stocks?