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Why land investment is still profitable during the recession

2019-04-24 Real Estate No comment

Since the outbreak of the current financial crisis, many so-called experts and news stations have believed that almost all of the real estate market, including land, has been destroyed. However, the fact is that land investment is not responsible for the current economic downturn. It is because of the economic recession that land is still one of the best choices for investment. The following are some of the reasons why land investment is ideal during a recession.

low risk

Since there is not much land available, the risk of buying as an investment is low. People always want land for a variety of reasons, and then make sure there is always demand.

Falling prices during the recession

When a recession occurs, the prices of goods and services tend to fall. This is because people don't learn as they used to. In addition, many people are either unemployed or have reduced working hours. Land prices will also tilt downwards, making them ideal for investment. Therefore, you will be able to obtain land at basement prices. In some parts of the country, land prices have fallen by 95% due to the current economic downturn.

Prices will rise after the recession

If you buy land during a recession, you are likely to buy land at or near the lowest price. After the recession, land prices will start to rise. At this point, your return on investment will be high.

Suitable for inflation

The recession has already said that the rise in inflation has also been extended. Land as an investment operation goes beyond inflation because it is always a valuable asset for us because its value to us tends to remain stable or even appreciate. Psychologically, it is not considered worthless at any time.

Lower development costs

During the recession, if you want to do this, your land development will become cheaper. This is because the cost of construction is reduced, especially if you choose to build a commercial or residential building that you plan to rent. If the land is farmland, then you may want to plant clear crops on it, and as the prices of most products and services fall during the recession, your production costs will be much lower. Therefore, once development is complete and the recession ends, the benefits will increase.

The key to land investment during a recession is to make sure that you are not investing in useless land that no one wants, and that it will not benefit you in any way. Not all land is equal when investing. In prime real estate areas, farmland, woodland and land on pre-development land are some of the better opportunities you should aim for.

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