4 ms·
IMO land is a horrible investment to sit on, they have acquisition costs, you have to pay annual rates to hold them, they're non revenue generating that as a re
by mythz 6y ago
IMO land is a horrible investment to sit on, they have acquisition costs, you have to pay annual rates to hold them, they're non revenue generating that as a result can't be claimed as a tax deduction (in Australia at least). They've also been depreciating in value lately, not a great short-term investment.
Better to invest into the Stock Market index until another opportunity opens up.
- EdwardDiego 6y agoDepends on the jurisdiction - if there's no CGT, and prices have been trending upwards, then the increase in value dramatically offsets any rates you may pay. Of course, the upward trend in prices relies on a bigger fool coming into your market, which of late has been Chinese money.
- Spooky23 6y agoLocalized power brokers like hospital systems and universities address this by being slum lords and slowly acquiring properties in areas of interest. In many urban environments you’ll see blighted property adjacent to hospitals, etc that is essentially a buffer for future clearance. It’s a win-win, the institution makes money (at arms length) on the slumlording, and they get incentives to “revitalize” the area when they need a new building.
- toomuchtodo 6y agoIllinois Medical District on the southwest side of Chicago just off of I-290 is a prime example of this. https://en.wikipedia.org/wiki/Illinois_Medical_District https://en.wikipedia.org/wiki/Illinois_Medical_District