Land Investment

Land investment has become a growing phenomenon in Britain.

With traditional stocks and shares showing lower yields and higher risks, people are turning to an alternative type of investment - land investment. As the RICs rural land market survey concluded in November 2004, "more and more people are being turned on by land as an investment vehicle. These are not just downshifting city slickers but also those looking for a viable alternative to bricks and mortar or the stock market".

Why are people interested in land investment?

The returns

There is little no doubt that land investment offers a good return. Many of the wealthiest individuals in the UK have their fortunes founded in land. And you only need to look at the figures. Since the early 1990's rural land prices have risen by 130%. What else has yielded this kind of a return?

If you're after a quick return then land investment probably isn't for you but if you are prepared to hold onto your asset for several years, then the profit is there.

Land investment has outperformed investing in bricks and mortar. Between 1983 and 2003, residential land prices rose a staggering 8-fold, whereas property (house) prices went up a measly 3-fold.

Tangibility

Land is a tangible or real asset. On an island like the UK, the source is strictly limited and you cannot suddenly manufacture some more. This will always give land a scarcity value and a quodos associated with owing it. Some people choose land investment purely because it is a physical asset or are attracted to owing a piece of Britain.

Accessibility

Land investment is actually now far more accessible to private investors. Traditionally, only large companies or wealthier individuals were able to afford, and then profit from, land. Today with the advent of 'plot sales' companies offering smaller acreage, land investment is open to private individuals.