The rudimentary understanding or the basic concept of land is that it is a marked piece of earth belonging to an owner. But this concept can be explained and understood in a multitude of ways. Economical and legal in both ways the land is a center of production enabling products for consumers though the land itself remains intact. As the supply increases with demand this is not so in the constant land resource as it is impossible to increase its supply although it may be used in many ways and included in various economical and legal systems.being a natural asset land is inclusive of everything attached to it, for example trees and buildings. The owner of the land is entitled to all the natural resources that come attached with the land. Lenders and investors consider land to be the oldest form of indemnity and thus land has been again and again invested upon.The space and air above the land are all included with the land ownership, it encompasses all natural and physical characteristics associated with it.
Land serves as the founding stone for all kinds of properties. But if we refer to real estate land is that piece of property without the encompassed add ons to it like equipment and buildings, having a fixed and demarcated parameter. The land ownership gives the owner the right to the natural resources and air space along with the land.According to traditional economics land with its labour and capital is a productive investment and thus the buying or selling of land determines profit or gain. Property is not depreciating and is a fixed asset and not a movable or current asset. The meaning of the word land can imply and be used in many ways as this largely depends on the situation and circumstances in which it is studied and utilized. Land can also be referred to as a lot or a plot, immovable and fixed asset.
One of the oldest and most valuable forms of resources, land has been used for investment from ancient times. From the development of economies, to the development of political systems in all these historical and revolutionary developments that have shaped the world, land has been a constant source of income, employment and power. Thus without a doubt the importance of this age old and most valuable resource has a magnitude of importance in real estate. The fact that we cannot supply the want of land makes it a more demanding and engrossing investment option. Though investing in land comes with its own set of risks investors are ever ready to grab a prime piece of land for investment.
