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Reflection on investment in land and homes
Purchase land and to build the board is probably the most often heard. But profitability in the long term remains uncertain. If we look at the profitability of agricultural land for a hundred years, it is 1.1% per year, which is very modest. For house prices, it’s even worse, profitability is 0.6%! Comparing with the increase of gross domestic product, the increase is 3.6%, which is much more. One reason is the house offering that is too large relative to supply. Read on in this fascinating article shown below.
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