Having a land or house investment price will never go down, on the contrary, land and house prices will always go up every year, so it is a very potential long-term investment instrument. But when we don't have a lot of money and we have to choose which one is more profitable, buying land or a house.
You can consider the advantages and disadvantages of these two investment instruments.
The advantages of investing in land: the price is cheaper because there are no buildings yet, no maintenance costs are needed, it can be rented out for parking lots, car/motorcycle washing etc. If the land is strategically located, the increase in capital gains will be very high. While the weaknesses of land investment are: Land is less promising to be used as passive income because people rarely rent vacant land. Land cannot be used as collateral for loans to banks. the wider the land, the less liquid it is.
The advantages of investing in house: Houses are easier to sell than vacant land, houses are easier to rent so you will get passive income, if the house is beside the main road it can be turned into a shop, cafe etc. Meanwhile, the drawback of housing investment is that it requires maintenance costs. The economic value of housing buildings will depreciate every year (10%).
You can consider the advantages and disadvantages of these two investment instruments.
The advantages of investing in land: the price is cheaper because there are no buildings yet, no maintenance costs are needed, it can be rented out for parking lots, car/motorcycle washing etc. If the land is strategically located, the increase in capital gains will be very high. While the weaknesses of land investment are: Land is less promising to be used as passive income because people rarely rent vacant land. Land cannot be used as collateral for loans to banks. the wider the land, the less liquid it is.
The advantages of investing in house: Houses are easier to sell than vacant land, houses are easier to rent so you will get passive income, if the house is beside the main road it can be turned into a shop, cafe etc. Meanwhile, the drawback of housing investment is that it requires maintenance costs. The economic value of housing buildings will depreciate every year (10%).