Here's Why Land Value Will Only Move In One Direction -- UP!
Vacant land seems to be one of the most overlooked investments as there may be a misconception that land investment is something that only the big players including property developers, large corporations and tycoons would be able to afford. This misconception is fed by the idea of vacant land being far too expensive to afford and at the same time, generates zero income.
However, what investors do not know is that vacant land investment is actually the easiest, most profitable low-risk investment. We cannot deny the fact that the population in every country, including Malaysia is increasing. The world's population is expected to increase by 2 billion persons in the next 30 years, from 7.7 billion currently to 9.7 billion in 2050. While simultaneously, the amount of land we have on earth will still stay the same. As the population increases, so do developments. Property developers are constantly searching for the new best place to develop a township in order to fulfill the demand of increasing population. If you, as an investor own a land that is seen as 'the new best place' for developers to build, the appreciated value of your land could make you a fortune.
Furthermore, land investment is said to be a low-risk investment because you won't be facing all the headaches of investing in residential and commercial properties. You do not have to worry about tenants destroying your property or even to worry about a bomb hitting your property! Because land is just land, it's made up of dirt. Nothing can destroy it and the value will only move in one direction -- UP! Vacant land also has little to zero maintenance cost compared to other types of properties which gives it a plus point.
The only drawback of land investment is that if calculated wrongly, the appreciation of land might take decades, development might not come to your land during your lifetime, and it might be your descendants who get to enjoy the value. However, with sufficient knowledge, planning, and calculation, the value of land can appreciate dramatically even in a short period of time. Successful land investment can make investors a fortune.
