Why land is valuable?

Land is one of the most valuable assets you can ever own. There are various reasons and advantages to owning land.

  1. Supply is limited. They are not making more land and yet the population keeps growing. All these people will need to build somewhere.
  2. Little capital needed. You can acquire an acre of farm land for less than ushs 3 million. You can buy a residential plot for ushs 3.5 million.
  3. Land does not depreciate. Land rarely loses value. In fact land is one of the most unique assets whose value seems to always go up.
  4. No hustle. Owning land is largely hustle free. If you buy a plot and fence it off you can forget about it for years. There are no tenants or customers to deal with.
  5. Land can be used in a million ways. You can grow things on it. You can build on it, you can lease it, etc.
  6. Land is the foundation for all real estate. If you plan on investing in real estate you need land.
  7. Price is fairly stable. Unlike crypto currencies and other crazy assets the price of land is fairly stable over the long term.
  8. Land can be used as collateral for debt financing.
  9. Land can easily be passed on as inheritance for generations.
  10. Low risk. If you deal with the right people land is fairly a low risk asset compared to other assets like businesses.
  11. Pride of ownership. Land is one of those assets you can be proud to own. Unlike other assets it retains its value.

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