There is an opinion that investment in land is reliable, stable in times of crisis and returns good returns for its owners. We decided to research this issue: to research how land prices behave over long periods of your time in Russia and abroad, what are the sorts of investment during this asset and what are its features. during this article, we’ll check out land specifically as an investment object, not land , acquired for the aim of living or placing your own business in it.
Real estate available for direct investment are often divided into two categories: residential and non-residential, which also are commercial. Residential land is usually rented out; It are often divided into apartments, apartments and personal homes. consistent with the worth segment, housing is split into economy class, comfort, business class, and elite properties. Commercial things are divided, consistent with their purpose, into retail trade, offices, warehouses, free-use land .
For a true estate investor, income consists of two components: the primary is that the rise per square metre , and therefore the second is that the rental payments. However, when determining the return on investment, it’s important to think about the owner’s expenses, like taxes, repair costs, insurance, finding a tenant, utility bills, payments to the management company, etc. Since these costs are always borne by the owner , then during the downtime and therefore the absence of the tenants, the property begins to cause losses.
Due to the very fact that land is extremely diverse, its cost will interact differently with certain processes within the economy. it’s extremely difficult to seek out commercial property statistics for an extended period of your time . to know how land can function as a way of capital preservation, I suggest examining residential land prices within the us , and therefore the cost of economic space somehow associated with residential property.
An interesting fact for the perception of purchased property. the important estate market isn’t transparent, we don’t track the costs at which transactions are made for similar properties after we buy the property. during this regard, the landowner might assume that prices are stable, which only the acquisition price remains in our memories.
Investing in land not only allows you to save lots of capital from inflation but also allows you to possess regular income . an honest alternative to purchasing land directly is investing in land investment . Working with land investment has great advantages for an investor:
Diversification consistent with facilities, sectors and countries;High liquidity,Ease and ease of investing.
The ROI depends greatly on the instant of purchase and therefore the specific instrument. Now (during the crisis caused by the coronavirus epidemic) the value of REITs has decreased dramatically, which suggests that the probabilities of getting an honest return on investing in REITs have increased.

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