Land has been trading for many years. its value has risen with time and not because of inflation but for the appreciation value. There are various reasons why land prices continued to strengthen. This can be explained through the use of economic terminology or simple logic. Some of the causes are population growth, economic development, infrastructure, greed and agriculture. Land has always been an alternative for investment. Favorable appreciation of values ??has exceeded the rate of inflation gave investors the upper hand. They become rich with time
This is determined by the economic theories that high demand will lead to a shortage. Shortage of land will eventually put pressure on the supply (availability), which as a result will cause land prices to rise. The price increase may be caused by a deficiency that can be overcome from population growth, increased revenue, inflation or other economic phenomena.
Residential land prices in rural areas have increased faster than in urban areas. This was proved by the study between 1980 and 1997. The appreciation of the value of the land has been better in absolute and percentage. Land in rural residential areas more profitable to purchase of land in urban areas. agricultural land has increased by an average of over 10 percent per year.
In recent years a very strong factor contributing to the appreciation of the land has been demand for natural commodities. The high demand for farmland and its products have been stalking the interests of investors. They have to constantly buy land cut fill semarang for the purpose of producing bio-fuel and other commodities such as meat, wheat, flour, among others. This has given agricultural land values ??are higher and have been the cause for the long-term price appreciation.
Land is a scarce resource. It’s hard to find land for sale in a particular area. For example, if you want to buy land near the lake, the owner may consider this area to be hers. It would mean that he probably would not sell the land, especially not at the market price. To convince the owner, the offer price must be at least 50% above its opening price. value appreciation are fictitious but real. So have the land in possession at different places in it can pull you persuade buyers, who want to spend money on a particular area of ??land.
Development is another factor that contributed to the appreciation of land values. In the economic zone, the owner of the property (land) will be offered a lucrative deal. As the value of land in the area is growing sky-high. Thus, the properties before construction can bring substantial return of capital. It’s hard to speculate about the development but possible. Construction of supermarkets nearby will take advantage of the price in the vicinity firm with more than 20% in the short term. The reason behind this increase is the net worth of terrain that offers comfort to its citizens.