LAND LESSONS- What is meant by the characteristics of land?

Land, unlike real estate or real property, has certain unique and specific characteristics that it alone holds. They are typically discussed in the context of physical and non-economic characteristics of land.

Physical Characteristics

Indestructibility: Land cannot be destroyed or worn out. Its appearance may be altered but it always continues to exist.

Immobility: Geographical location of the property remains the same & can never be changed.

Uniqueness or Non-Homogeneity: No parcels of land are exactly alike.

Economic Characteristics

Scarcity: The total supply is fixed. Land is not limitless.

Improvements: Improvements to a piece of land can have either a positive or negative impact on its value.

Permanence of Investment: Investments in real estate are long-term. Since real estate transactions are complex and lots of money is involved, transactions are not made very frequently.

Location or Area Preference: Things such as history, convenience, and reputation of an area may influence location preferences.