Question

One disadvantage of owning land is the potential to realize a lower return on your capital invested in the land. Why is this the case??

Answer 1

One disadvantage of owning a land is the potential to realize a lower return on tour capital investment. This is the case where real estate, that do not present a high amount of return or change in value over time causes a person to rethink their decision. Usually, companies or individuals invest in real estate in order to realize the gains that come from the change in the value of the property overtime. This is a risky decision cause the idea that the property will surely revert the invesent and then allow profit over that value is never decided, or, isn't sure. That value depends upon a lot of factors and could result in a lower return therefore, this is the reason some. Investments carry a risk. Of lower or no returns or even loss.