What are the Advantages and Disadvantages of Land and Property Investment?

Suba

Moderator
Staff member
Investments in land and property are very popular with conservatives, which are long-term and very safe or minimal risk. Due to the increasingly dense population, land and property prices will always increase, so that in a few years, you will get big capital gains. But unfortunately land and property investment requires a large initial capital. Also land and property are illiquid or cannot be sold quickly when cash is needed.
 
You are right with your opinion that investment in land and property is safe or with minimal risk. I am currently scouting for a property to buy for my lifetime investment. I have money in the bank that I will not be using for at least 10 years and it is better to be invested than just letting it sleep in my bank account. However, the downside to a property for investment is the liquidity issue. When you suddenly need the money and you cannot sell the property for the right price the tendency is to sell at a big discount just so you can convert the property into cash that you badly need.

My own problem with investing in a property is the ownership. If I would buy then I cannot let the title to be under my name because I have no legal heirs. There would be a mad scramble for my estate and I don't want that to happen.
 
From my understanding , there are some disadvantage that is associated with investing in real estate lands and properties and one of the most popular form of disadvantaged is just that it requires large capital just like you have said .

A person who do not have up to the required amount of money may not possibly invest in the real estate , that is why the rich are only those that are capable of investing in the real estate property or those that are interested in buying them for their own personal use.

Over here when you invest in a property especially Lands and you do not build anything in the property, in some occasion if the government are really interested to used the location , your property can easily be taken over by the government especially when you haven't raise a building because the rules and the Constitution of the country state that it is the government that has all the lands.

When you don't raise a building in the land the government can easily takes over and do whatever they likes with the land but when you build anything the government are to pay base on the property that is located on that land.
 
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