Does Investment Land Complement Property Market Investments in a Portfolio?
Mark Twain?s oft heard adage ? ?buy land, they?re not making it anymore? has been indirectly taken to heart by investors in the UK scouring the markets for the best investment. That is to say that in relation to the boom in the buy-to-let property market it is not the bricks and mortar which rises in value, but the underlying UK land on which the development sits. Indeed, the value of bricks and mortar deteriorates over time, so in some senses a UK property market investment is actually a UK land investment more than anything else. In this article we will look not at the relative merits of a land investment vis–vis a property market investment but at whether the two (ie direct land investment versus indirect land investment) complement each other in an investment portfolio. The former subject is too extensive to discuss here and, at any rate, since many people already have property market assets the pertin Sell House Quick ent question for them is this: ?does investment land complement property market holdings or is each investment opportunity best pursued in isolation??. Of course much depends on what type of investment land is being considered. For instance, self-build land investment is a natural bed-fellow of buy-to-let property market investment since it is common for investors to develop small plots of UK land and then retain ownership in order to earn rent from the resulting property. However, if your idea of the best investment is not one which involves buying land with planning permission or buying land without planning permission and then developing it out, there are land investment alternatives. One such is buying land on a professional property and development project. This is sometimes known as Site Assembly land investment and often appeals to the investor for whom self-build land investment is not suitable.