Long term investment - Research Paper Example

e discussion will expound on various examples: long-term investments, reasons for investing, how to identifying the best form of investment, and how people can apply long-term investment in personal and financial situations. The discussion focuses on helping people understand and apply the information in their personal finances. According to Norris (2010), there are many examples of long-term investments. Land is one of the long-term investment option that most of the people use. A piece of land continues to be a valuable asset because virtually no one can survive without land.

Preference of land is high, because conversion into money is not within a short duration of time and so the benefits increases. Land mostly appreciates rather than depreciating and so it serves as a guarantee to increased amount of money than the initial cost. It is an excellent choice of long-term investment because once available it can be developed. Once the development takes place it increases in value, and it is permanent. Increased population makes the demand of land higher on a daily basis.

Various studies reveal that due to the increased population size houses is in high demand. Shelter is one of the human basic needs and, therefore, investing in real estate for rent guarantee high returns within minimum duration of time (Norris, 2010). Rental buildings require investment in just the initial capital to kick-start and then enjoy the rent income for the rest of the time (Tyson & Brown, 2012). A house is a fixed asset, which means that it is permanent unless a natural calamity strikes.

Various financial stakeholders have taken an initiative in funding building of rental houses through loans and mortgages. It is with this reason that most of the people are choosing it as a method of long-term investment. The risks involved in rental houses are minimal and, on the other hand, the advantages are making it a favorable choice of investments. Stocks or