Land and valuation of land with various land investments - Research Paper Example

This essay analyzes that unlike other investments, land investment is fixed in quantity and immobile. Its value, however, keeps on appreciating, this makes land one of the major and vital investment projects of all times. The risks involved in land investment are also very minimal, this is because, when one invests in the land he is sure that its value will keep on appreciating over a given duration, thus leaving no room for selling it below the investment price. This is contrary to other investments which might depreciate in value with time.

Land investment is very advantageous in the sense that, it historically keeps on appreciating in value. There are fewer risks involved in the land investment. In addition to being an investment project, the land is also a factor of production, which means that investing in land may end up giving double returns, that of its value plus the proceeds from production, say if used for Agricultural purposes. Property appreciation; talking about property appreciation, this refers to increase in the value of a property with time, a good example is that of land.

Due to increase in demand each day, some properties for example land will continue appreciating in value because population keeps on increasing and its supply remains fixed. Equity refers to the residual claim on an investment. The land has the equity in that, after investment on land, when one wants to sell off his property, he will sell land at a higher price than the initial investment price. The land is, therefore, the best equity investment. . Mostly, they are knowledgeable in finance, money matters including banking, stocks and commodities, investments and economics.

INTRODUCTION People have always been passionate about acquisition of land for ranching, farming, hunting, fishing, recreating, commercial-agricultural, and for land to develop into a higher use. Lands are very precious from time immemorial and that is why there have been laws, which govern land issues right from the start of civilization. The meaning of land is not only derived on the face value, but by what it contains and encompasses and this is why different lands attract different prices when being valued.

There are also areas with vast lands, which just lie idle yet they are owned by people. In the day-to-day life, almost everyone comes into play with some of the land rules governing the ownership, use or occupation of land. To begin, every person lives somewhere on a parcel of land. And many humans owe their existence, livelihood or employment, directly or indirectly, to something that was produced from land. This clearly shows that we cannot live without land. Some people live on leasehold homes while others on freehold properties.

Not many will understand the term freehold and leasehold. It is therefore very important for each person to understand and appreciate what he or she owns or occupies. Individuals who rent homes on a weekly or monthly basis need to understand to what extent they can act or do things with the rented property and what they cannot do. The same principle applies to people living with their parents or on properties owned and managed by their partners. They need this knowledge so as to understand the rights they have, if any exists, and