The term best is a subjective term, since different investments will be appropriate for different people. However, there is a way to evaluate this comparison with enough objectivity to give the average person some insight into whether it is better to invest in land or in apartments. This is best done through comparing the two investments across multiple categories and then drawing conclusions based on how well they do in those categories.
Category #1 – Past and Current Trending
In the past and current trending category, land investments are quite excellent. In fact, the only thing in the history of the world that has been consistently rising is the price of land, because land ownership is a big part of life in much of the world today. For that reason, the trends over the past and the current amount of time show that land investments are great opportunities that for the most part will yield good returns in the past and in the present.
The same is true for apartments. In the past and in the present, apartments have returned very good investments. However, the problem with apartments is that there is a larger initial capital that must be invested in order to get them and this in turn can result in some really bad losses when they do happen. Both apartments and land investments have very good return prospects, but apartments can cost you a lot more if you lose. For that reason, land investments are the better pick in category number one.
Category #2 – Future Trending
If people could predict the future, then it really would remove a lot of the mysticism out of it. Aside from the general principle that land values and apartment values go up over time, predicting the future is extremely difficult to do. In the case of land values however, the future is looking bright not only because of the general axiom of the increasing land values over time, but also because it is currently a buyer’s market. Therefore, you can easily invest in land and hold it until it starts to increase in value again.
The same is true for apartments, to a certain degree. Where it falls apart however is when one considers the fact that since it is a buyer’s market, there are many people looking to get out of their apartments and into houses. This either involves the purchase of vacant land or simply the purchase of a house. In both cases, it is demand that is taken away from apartments and that in turn does not make their future outlook as good as it would be with land investments.
So, there you have it. In both a past and present comparison as well as in a future comparison, land investments appear to perform a lot better than their apartment investment counterparts. For this reason, if you are interested in making an investment today, you are much better off going with land investments.