Before you start investing in property, you need to think about the kind of property you wish to buy. What type of property is the best investment? Different types of properties have varying advantages and disadvantages.
Vacant Land as a Property Investment?
Let’s first consider vacant land. People purchase blocks of land in the hope its value will increase enough to cover the cost of holding the land, interest rates etc., and provide a sufficient return on the amount of money invested, knowing there is no regular income from a vacant block.
Some people have made lots of money purchasing large tracts of land on the urban fringes of major cities. As the fringes of suburbia have expanded, they’ve been able to sell their land, and the price escalation of the land can be huge. Successful land speculation needs much investigation and analysis.