Land is generally considered a long-term asset that is tangible, usable, and of limited supply. Because of and being in limited supply, long-term trends have shown that land always appreciate over time. The key principle is knowing the right time to sell or develop the land. If you get an opportunity to own land remember it will appreciate over time and then you can get the best price for it. In the following paragraphs I share some of the benefits of owning land in Busoga.
Demand versus supply: Land is a commodity that is available in limited supply. As the size of the world’s population grows, which in turn causes an increase the demand for land, so the value of land increases. The after effects of this is that the longer one owns land, the higher the expected returns, especially when one buys land in an area that is projected to experience significant growth in a few years like some areas of busoga especially Jinja city. it is important to note that there is a finite amount of land available, and its supply cannot be increased to meet the demands of the market. Because of the limited supply,
there is serious competition which leads to high prices when selling. Like someone said they are not making more of it so go out and buy land. Appreciation: Land does not depreciate like other factors of production.
Thus, instead of losing value over time, a land plot does not deteriorate but rather increases in value. Land
remains the same for decades, keeps appreciating, and provides the owner with a sense of security. If you compare land ownership with rentals. The situation with Rentals, however, is completely different. Rentals lose value over time as a result of the regular maintenance and repairs that are required as they age.
Leasing: Another way land ownership can be of benefit is by leasing. Some rural land owners in Busoga lease their land for the short-term and long-term. By leasing out the land they are able to increase returns over the long run. A landowner can earn well through agricultural leases a small profit for a given period of time. Land owner in some parts of busoga lease out their land for sugar cane growing and other crops for a given time period. Retirements Benefits: Land can act as a form of retirement savings. Owning land is beneficial for retirees .you can buy now and wait to sell it later in old age since the value appreciates. Land ownership provides the owner with financial security and contentment. It generates passive income, offer opportunities to earn, and let you double their money without high risks given its high appreciative value. With land, one may keep it for years to let it appreciate as you don’t need to worry about damages or maintenance expenses like other investment products. At a later stage one can land is divide it and sell plots separately at a good price. Land holds the potential of becoming an income-generating asset over time. A retiree has the option of either renting or leasing out the property to make money after retirement.
Increased borrowing power: The land you own can act as collateral security hence increasing your borrowing power. Most banks in Uganda tend to give higher amount of money to borrowers with land as collateral. To increase your borrowing power, you need to also survey your land and get a certificate of title. This will increase your bargaining power when it comes to secured lending transactions.
Economies of scale: Busoga region has historically had huge potential for investment. There are a number of ventures and industries that are thriving in the different Districts of Busoga. Busoga region has a lot of Industries, hotels, tourist sites, sugar plantations and others businesses. You can buy land and ride on the existing economies of scale in the region. You do not have to re-invent the wheel. But you can ride on the available ventures and benefit from their economies of scale. You, as a potential land owner, may choose to
benefit from what is already on the ground by buying or leasing land around existing facilities, for mutual benefit. Whether you need financial security, want to double your money, generate passive earnings, or invest in real estate, owning land offers you the above benefits and many more. Overall, it’s a limited resource in which you can invest money to build wealth but due diligence and care should be taken when purchasing it. Remember they are not making more of it.