Profits From Sale Of Vacant Land
On 14th December 2009, a piece of vacant land with a size of 1.1941 hectares was purchased at a price of RM350,000. Over the years of holding the land, development activities started approaching and we held on to the land for about 10 years. In August 2019, the vacant land was sold to a developer for RM1,700,000.
The value of vacant land acquired in the beginning was RM350,000. And it was sold at a price of RM1,700,000 after 9.65 years.
Therefore, the Return On Investment is:
Acquisition Cost: RM350,000
Sale Price: RM1,700,000
Annual Return: 39.97%
Compounded Annual Return: 17.8%
Investment Period: 9.65 years