Why does the value of land/real estate increase over time? Other commodities deflate or are unstable, what makes land a good investment most of the time?
In: Economics
Land does decrease in value, often because of real or perceived changes in future desirability of property. The closing of a mall or an anticipated development not occurring, or a flood bring into people’s mind that property is flood prone, comes to mind. However, real estate is normally considered to be a good investment because it’s value fluctuates differently from the other major investments: stocks and bonds.
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