As many investment markets worldwide seem to be suffering, such as gold, pensions and the stock market it is surprising that investment in land is still a popular way to achieve profit from returns. There are however certain myths surrounding land that is preventing many people from taking the step and making returns from their investments. The purpose of this article is to debunk some of these myths and show people that land is not only a great asset to possess, but also valid investment

Many people still believe that land is just land and are surprised that plot prices can vary so greatly. This is not the case, land varies immensely falling into categories such as residential and agricultural; in addition, land can also fall into categories such as woodland, Greenland and plots with and without planning permission to build. The price you pay for your investment is directly related to the demand for any piece of land and the quantity of the plot. For instance, land surrounding the London suburbs is of high demand and hence its price is considerably higher than a plot in an isolated part of the country. By understanding this relationship between size, location and quality it is possible to make sound investments.

Another myth that surrounds land investment is that unless you have a considerable amount of capital, you will not be able to invest. This is not always the case, while plots that already have planning permission are almost certainly more expensive, if a plot does not have planning it can be up to ten times cheaper. As an investor you want to buy plots that have no planning permission and then apply once you own it; by doing this you increase your investment by buying for less and selling for more. Also when buying land there is no need to buy huge amounts, it is often the case that a considerable investor will buy a large plot and then divide it and sell the smaller plots, by doing this, they make land more affordable whilst making a profit.

Some hold the belief that the price of land rises slowly and hence as an investment opportunity is will have limited short term returns. This is not the case; land can rise in price in the same way as property, sometimes by as much as twenty percent in any annual period. Land that is ripe for development can be closely linked to the property market; on the other hand, an isolated piece of woodland is unlikely to rise in price quickly.

Many believe that to be a land investor you must have specialist knowledge to achieve a decent return. Naturally investment is always going to be a risk, so by minimising the risk you increase the chance of profits. You do not need the know-how to take soil samples or legal expertise to divide it into sub plots, these tasks can always be passed onto contractors. By following the press it is possible to gauge the state of the market and assess any risks; the internet is also a useful tool for this purpose. When starting out, it is normally advisable to invest in plots in your local area as then you have knowledge of the area, and subsequent worth of any particular piece of land.

Hopefully this article has gone some of the way to improve the view of land investment opportunities. By understanding that it is an accessible, realistic and above all cost effective way of making money, it is possible for many to buy plots either for a quick turnover or even for their dream home. So next time a plot comes up for sale in your local area, consider it as an opportunity to invest and reap the rewards that many in the country are already experiencing.