Simple economic theory explains why land is such a good investment. The market price of virtually everything is largely related to how much of it exists. Take oil for example, if suddenly the number of barrels coming into the UK halved overnight, each barrel would cost a lot more because the seller would realize they had something that everybody wants and these people cannot get it elsewhere.
The same is true of land, but the most important thing to remember is that there will never be more land. We have a limited amount of land available in the world and it is only getting less due to more and more land being purchased and of course other modern day factors such as global warming. This means that naturally the price will always generally be on the way up, so the best time to get involved is now.
The recession and investments.
Of course, in the UK and indeed across most parts of the world we have experienced a long period of economic downturn which certainly hasn’t provided the best conditions to invest large sums of money and certainly many traditional forms of investment are now less attractive to those looking for a good return over time.
This has led to new investment types becoming available by London based companies. A typical investment would involve entering a limited liability partnership which had ownership of land. You would be part owner of the partnership company and as a result own a share of the land. I hope you enjoyed this article.
More information about this can be found on the Claremont Forbes blog which can be found at .