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3 Physical Characteristics of Land
With so many individuals getting involved in real estate in the last 2 decades, it is inevitable that the very definition of land starts to blur.
It doesn’t help when “gurus” start coming up with their own high-impact descriptions of what is land.
But you don’t need to be a genius or attend a seminar to know what land is. In fact ,you probably know what it refers to intuitively.
And in case you are still unsure here are the 3 physical characteristics of land that make it such a unique asset compared to others.
A parcel of land is immovable. It simply cannot be moved.
You can demolish a house built on it. You can remove the soil that rest on it. And you can even dig as deep as you want to look for minerals.
Yet no matter what you do with it, the parcel of land still sits there, occupying the same geographic space and position on the map.
This means that a person can only go to a piece of land. It cannot be brought to the person. It cannot therefore, be physically delivered.
in transfer of ownership, the new owner receives a title deed verifying ownership.
Although immobility makes real estate unique, it can cause problems for investors or corporations with a big portfolio.
Managing multiple properties remotely can be a huge challenge. And the best way to manage multiple properties is often to outsource and hire professional management companies. Real estate related businesses that are big enough will tend to have their own management departments to manage and operate their properties.
Land is indestructible and therefore durable.
The land that historical people of significance had walked on is still there today. The very colosseum the Romans used for their entertainment still stands at the exact location today.
This single factor associated with land is one of the main reason why it is such a highly sort after asset for investors.
Bonds mature, public listed companies can go bust, and even priceless antique pieces can break. But a parcel of land will always remain where it is sitting… unless a global environmental catastrophe sends it to the bottom of the ocean.
Even then, that piece of land will still belong to you.
Because no 2 parcels of land can occupy the same place on the globe, it is non-fungible. There are simply no exact substitutes and replacements for a particular land parcel.
There might be some that are comparable. But never replaceable.
For example, if you walk into a grocery store to buy a pack of sugar you can certainly bring the sugar back for a refund or replacement if something is wrong with it. You will be able to easily get a replacement packet from the shelves to replace your bad bag of sugar.
But in terms of land, no similar substitute exist.
However, a lot of large scale developments like condominiums and cluster houses share similar designs and layouts even though they obviously stand on different land. Even though they are similar visually and physically, they are still not the same.