Seeking high returns? Investors turn to Land. - Emerging Real Estate

Seeking high returns? Investors turn to Land.

27/10/2010

 Seeking high returns? Investors turn to Land

It seems obvious to point out that all investors ideally want a high return on their investment, but finding out the best way to achieve long term capital growth can be difficult with so many options available. The secret is to find an investment opportunity that not only invites good compound growth but also remains secure in a volatile economic climate which means you get long term gains and little risk. Compound growth is the year on year growth rate of an investment, leading to a predicted return over a number of years assuming a steady year on year rise in value. The problem with most investments is that this steady and constant growth cannot be relied upon. Luckily, this is not the case with land investments and your money therefore works much harder for you over the long term.

UK Land has, over the years, provided better capital growth opportunities than most share options, hedge funds, investment trusts or equities, and its low risk aspects make it even more appealing. Land values rise year on year and as it is a low volatility market, this growth is steady and solid without risk of negative equity or impact from wobbles in the stock markets.

There are many varying reasons for the success of UK Land. For one thing, our population has consistently increased over the past few decades and immigration can lead to many more thousands entering Britain each year, often constituting 60% of our population growth each year. Recent social trends have also led to many more people living alone. Add to all this our increasing lack of affordable housing and we are looking at possibly needing another 1.5 million homes over the next 10 – 20 years and these have to be built somewhere – land is at a premium and anyone with investments in this area is likely to benefit.

It is not just land available for building but farmland as well which is currently in high demand for precisely the reasons outlined above – regular high returns and good capital growth, stability and low risks, and good compound growth potential. It has been quoted that the overall price of farmland has increased by as much as 30% in the past 12 months and by 130% since the 1990s - careful plot selection can lead to even greater gains.

For more details on UK Land opportunities, particularly agricultural land, please see our website: http://www.emergingrealestate.com/uk-buy-to-let-agriculture-opportunity