Investing in Land

Some of the richest people in Latvia made their money from land. There are cases of individuals paying the equivalent of pence per square metre and selling for ten, twenty Euros and more per metre.

Land prices were rising steadily in Latvia until the current economic crisis took hold. Even so prices haven't fallen by the same degree as property prices. In some areas prices have not fallen at all and land has remained a very good investment.

More property can be built and if too much becomes available too quickly, this can have a negative impact on the market as we have seen in Riga. But land is different, as Mark Twain said 'they 'aint making any more of it'! It can't be produced or increased (except perhaps in Dubai at horrendous cost!).

All land will increase in value given time. But not all land will increase at the same rate. Obviously (raw) land within the Riga City boundary will increase ten fold when it is earmarked for development, but this land is not that cheap to buy and development may be many years off.

There is land currently for sale in Latvia that will increase in value at a faster rate than other land. Obvously if you can buy in an area where future development takes place, you can make some serious money.

We have been looking at land for 18 months, checking, comparing, analysing and have seen some wonderful pieces for sale, some in or near villages and towns, some remote with lots of wildlife, deer, wild pigs and beaver etc. We have bought some too and seen prices in some areas rise faster than in others.

I read that Bob Hope made millions of dollars from his land investments. His trick was to buy up desert land a few miles outside of Las Vegas and wait for the city to expand towards it, then he would sell for a substantial profit.