Why Buying Lands Makes More Sense Than Locking Your Money In Banks
Investment on land is becoming a very profitable commercial initiative. It yields much higher return to the landowners and encourages them to channelize in other profitable business ventures using land. Land is such a fixed asset whose price will always in the sharp rise with the passage of time. Even a small piece of land has the potential to generate sufficient higher profit margin for the landowners. Now many young men are taking loans from banks or they are using their own limited financial resources to purchase land from farmers and other stakeholders at a cheap price rate and then they sold it to renowned real estate giants at a higher price rate. Many of them have become prosperous in this manner.
Therefore it can be properly said that investing money on lands can yields higher returns compared to that of banks and other financial institutes. Saving the money in bank though ensures financial security but it takes a very long period of
time for the depositor to receive the principle amount with interest. The main reason is high maturity period and even if the depositor receives the stipulated amount the returns is not sufficient. The returns that a depositor receives from the bank after a fixed maturity period is not sufficient to keep pace with rising prices of essential commodities. Besides, rate of interest of bank does subside with the passage of time. In this scenario it is quite applicable to invest the money in the business of land than to pile it up in banks. Land business provides ample opportunity of making money through lease and rent besides, selling it to builders. Even any person buys any land at a high market price then they can compensate the loss through offering it for rent or lease for any purpose. Besides, investors do receive favorable tax benefits from investing in any real estate project and so their essential returns never curtailed.
Investing money on land also involves higher rate of saving and that result in higher returns. In the period of inflation prices of land is in the mode of uprising and so the owners have the option of leasing the land at a higher installment charge every month before the end of the tenure. So this shows that in any economic circumstances the returns on land investment is quite higher than those from the banks. If we sale our land at retail price then the possibility of earning higher returns become more secure. Many real estate giants are now emerging and are in search of plot of land everywhere. Individuals who have sufficient land at his disposal can sale it different companies with different market price. It will not only result in higher profit margins but also encourage them to become partner in many real estate projects to enjoy much higher slice of profit. Investment land thus provides many business opportunities to the shareholders than keeping the money in bank.
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