Land or House Investment, Which is more Profitable?

[Suba]

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%).

 

[Etini Willie]

In my opinion, as far as it is real estate, it is surely a good investment. Whether it is a house or a land, just have investment in a real estate sector.

 

[fcbetting]

Land if you can grow something on it or rent it to somebody. Most often agriculture land is rented for 10 years. Real eastate if you have university in town and students.

 

[Suba]

For me it was a difficult choice, because I couldn't take both (there wasn't enough money), so I had to choose one. although both are profitable and potential but must choose the best.

 

[cherry123]

I prefer investing in Houses asthry are easier to sell than just mere land, you can easily rent out your houses and rent can be a good passive income stream

 

[astutimeliana723]

This is location dependent. If you are in a densely populated environment, the investment in housing is better, we can rent out the houses we own. Meanwhile, if it is in a location where there are sparse or no residents, then land investment is better, we can use it as plantation or agricultural land.

 

[Abigael]

Land and housing investment are great for earning you profits. But you need to have good knowledge about how these investments work for you to earn great profits. You need to know how they appreciate or what businesses you can do with them to earn profits.

 

[cherry123]

Yesh this investment is location dependent. In a densely populated environment,I believe housing is better, as you can rent out the houses very fast to make fast money as anticipated

 

[Stardom22]

For me I think that investment on the land is more profitable this is because one is only required to purchase the land and wait for a couple of years for it to appreciate whereby they can sell it very high profits for that matter.

 

[cherry123]

But for a house you start earning right away. The period you are waiting for the land to be ready for you to dispose of it another with a house would have gained more

 

[Suba]

For me I think that investment on the land is more profitable this is because one is only required to purchase the land and wait for a couple of years for it to appreciate whereby they can sell it very high profits for that matter.

Investing in land will be difficult to sell or cash in, in contrast to investing in houses, you will quickly get passive income by renting it out to other people.

 

[Springtime]

In my location, both investments in land and house require a huge amount of money. If I have sufficient capital, I would invest in land first. Depending on the location of the land, I may consider to rent it out or build a house on it.

 

[Suba]

In my location, both investments in land and house require a huge amount of money. If I have sufficient capital, I would invest in land first. Depending on the location of the land, I may consider to rent it out or build a house on it.

You are right, each location will have different land prices, the more densely populated the more expensive the land will be, and the investment strategy whether to buy land or houses will of course be different. usually the house will be very expensive.

 

[Stardom22]

I think it's quite easier to trade with the land tha anything else. This is because you can rent out the land to be used by other people for business purposes as it appreciates for a sale at better profits.

 

[Suba]

Land will be cheaper because there are no buildings on it, so with the same amount of money you will get more land. Land can also be used as a place for a car wash business.

 

[cherry123]

If you have money you can go for both investments i.e both land and house though it need a huge amount of money to invest in them but the profit will be high too