I have been thinking about either buying a already build home or land, what will yield better ROI, Land or a Already build home?
2006-11-21 03:26:48 · 6 answers · asked by talwar007 2 in Business & Finance ➔ Investing
Normally ROI on land is higher than homes. A home can generate rental income while the land does not generate income unless you use it for agriculture. House is a depreciating asset while land is an appreciating asset. The cost of floorspace increases with time but it is slower than the increase inland prices. The cost of constructing a house is the same everywhere but the cost of land varies from location to location.
2006-11-21 08:10:27 · answer #1 · answered by StraightDrive 6 · 0⤊ 0⤋
Always a land, in the long term, if the area is of great potential...
The buyer can build to his choice, without the hassle of demolishing the old one, or even the sentiment/belief of "occupied" by some undesirable, unseen beings etc ...
A built house can at the most fetch a prevalent realistic price only if the buyer prefers, and chooses the style, type, size etc..
2006-11-21 17:59:01 · answer #2 · answered by Spiritualseeker 7 · 0⤊ 0⤋
hard to say without making some important assumptions. Generally I'd say the house because you can rent it out and the income increases your ROI. Further, generally the demand for a home is greater than raw land so appreciation potential is greater in a slower or normal economy.
2006-11-21 03:34:04 · answer #3 · answered by Jim7368 3 · 0⤊ 0⤋
I am into real-estate business since 15 years, its always better to invest in virgin land as compare to developed properties. you get more returns on it.
sidhu
2006-11-21 04:07:24 · answer #4 · answered by Sudhir 1 · 0⤊ 0⤋
read tips on real estate and investments on this site to help you more
2006-11-21 03:56:59 · answer #5 · answered by yummy _ 3 · 0⤊ 0⤋
There are some useful tips here.
2006-11-22 20:17:24 · answer #6 · answered by Anonymous · 0⤊ 0⤋