Investing in a large acreage of land has obvious lifestyle benefits including use for leisure activities, growing or animal use but why should you consider land investment?
UK farm prices rose 18% in the latter half of 2006 as demand is far exceeding supply of available land (souce: Royal Institute of Chartered Surveyors 2006 Rural Market Survey).
Residential land prices have risen 8 fold over the past two decades according to a recent Halifax survey. By way of comparison, the average UK house price has risen by only 3 fold in the same period.
To tackle the housing shortage in the UK new land must be designated for development and it is very likely that development will occur on some Greenfield sites. This is another driving factor in the current increases in the value of investment land - the general public is starting to realise just how much a piece of land would be worth if it gained planning permission.
Unlike many other investment vehicles whose shifts in value can be confusing without plenty of prior investment knowledge, the fluctuations in the price of land are quite transparent – it's easy to understand why and how they occur.
The tangible nature of land also provides you with an added element of investment stability and owning a piece of land is nothing short of prestigious.