Land is More Tangible

Land is considered a better known investment vehicle and as such people are much more comfortable with it since they can actually see and touch it. They know that it is theirs and theirs alone, and this, for many people is a very important psychological feeling.

On the other hand with stocks you are more likely to be apprehensive and often you never really get to see a stock certificate yourself, since stocks are usually bought and sold via stock brokers who normally hold the documents.

Lesser Chance of Fraud

When you purchase land the likelihood of being ripped off or defrauded is highly unlikely. This is so because you can visit the property to verify its existence. Also you can do a check at the government land office to check the ownership and existence of the land in question.

It is easier to get ripped off when you invest in stock since you do not hold a actual stock certificate yourself most of the time. Also there are some unscrupulous brokers out there who may steal your money. It is more difficult to check on the authenticity of a stock and whether or not you hold that stock.

Demand

Over the years, the demand for land has seen an exponential rise as population increases and as more and more people possess greater discretionary income.

The demand for stocks tends to remain relatively the same over time as people enter and exit the market.

Increase in Value

The value of land has over the years increased in value and rarely do you see a dramatic fall in said value. Land such as agricultural lands generally are in great demand and this forces up their value.

Although stock can appreciate in value quicker than land over the short term, this appreciation is not guaranteed to happen. Most stocks tend not to show any significant appreciation over time and only a few will even show a small improvement in value. Stocks normally tend to fluctuate in value over time and when there is a massive sell off or a financial crisis they may even lose their value to the point of being worthless.

Hedge Against Inflation

As a hedge against the rate of inflation land has been a very good bet. To address this problem you can opt to rent out your land for certain uses. If there is a building on the land you can possibly get a higher rent.

Stocks are never a good hedge against inflation mainly because they fluctuate dramatically from day to day.

The main problem with owning land as an investment is that you may have to pay taxes on it. Also, if it is unoccupied there is likely to be maintenance, insurance, and other costs that you will have to pay each month.

With stocks you are liable for tax on the dividends made.

In the end, if you weigh the pros and cons of land investment and stocks, you will see land investment as the superior investment vehicle.

Low Risk

Because there is not much land available, the risk involved in its purchase as an investment is low. People will always want land for a multitude of reasons and thus ensures that there is always a demand.

Prices Fall During A Recession

When a recession occurs, the prices for goods and services tend to head downwards. This is due to the fact that people are not earning as much as they used to. Also, many people have either lost their jobs or have there working hours reduced. The price of land will also tend downwards making ideal for investment. Thus you will be able to acquire land at a basement price. In some places across the country land prices have fallen by as much as 95% due mainly to the current recession.

After The Recession Prices Will Go Up

If you purchase land during a recession, then chances are you would have gotten it at an almost rock bottom price or close to it. When the recession has ended the price of land will begin to tend upwards. At this point, your returns on your investment will be great.

Good For Inflation

This recession has brought about an increase in the rate of inflation that has also become prolonged. Land as an investment operates somewhat outside of the rate of inflation, in that it will always be a valuable asset to have simply because its value to us tends to remain stable or even appreciate over time. At no time will it be viewed as worthless, psychologically.

Cheaper to Develop

During a recession it will become cheaper to develop your land if you desire to do so. This is to due to reduced construction costs, especially if you chose to put up commercial or residential buildings that you intend to rent out on it. If the land is farmland, then you may want to grow a certain crop on it and with the prices of most products and service falling during the recession your cost of production will be far less. Thus the benefits will increase once the development is done and the recession is over.

The key to land investment during a recession is to ensure that what you invest in is not a worthless piece of land that no one would want and that will not benefit you in any way. Not all land is created equal when doing investment. Land in prime real estate areas, agricultural lands, timber land, and pre-development land are some of the better opportunities you should be aiming for.