Every economic crisis forces investors to look for solutions to invest funds in a safe and stable way. In order to make profits in the long term, gold or precious metals are often pointed out as examples. However, due to large fluctuations in value, the investment of capital in this type of goods may not be very attractive. In addition, storage of such deposits is problematic. In this situation, a more favorable investment of capital is real estate, specifically land. This is the most advantageous materialized form of investing savings. Such an investment does not lose its value, land is not in danger of overproduction, for example, and its resources are steadily diminishing.

 

The amount of inflation and forecasts in the financial market.

The current situation and double-digit inflation, which has persisted for several months, determines many entrepreneurs to look for and implement solutions that allow them to decide on the spending of free funds with peace of mind and stability. According to the Central Statistical Office, in May this year inflation was 13.9%. In June, it was reported to have risen to 15.5%, while July reported a value of 15.6%. However, any informed businessman knows that “hidden” inflation can be several percent higher than the CSO’s calculations. Forecasts by specialists in the financial industry and government institutions say that the state of several percent inflation will continue for the next two quarters. We also know that it may take much longer for inflation to return to a low level, so a proper corporate financial policy is extremely important during this period.

 

What kind of land to acquire and how much can you make on it?

If you are planning to acquire land for commercial purposes, it is important to consider its surroundings, its location in relation to major transportation routes and, of course, its use. We can never predict what will happen in the long term, but some features of a property remain constant and the ability to anticipate changes in a property’s immediate environment is crucial to its long-term value. We should remember that safe investments in land should assume an escrow period of a minimum of 5 years, because during this time any tax burdens (income tax, planning annuity, adiacetic fees) expire. Looking back at the last 30 years in Poland, land real estate has increased in value by an average of several percent per year. However, we have had several significant events that undoubtedly had a major impact on the price of land property. One such event was undoubtedly Poland’s entry into the European Union, which initiated a dynamic increase in the value of land plots. According to the Central Statistical Office, between 2004 and 2010 the value of building land increased by more than 400%, so this example shows that a long-term, prudent investment in land pays off like few others. Today, unfortunately, year-on-year increases are no longer as dynamic as in that period, but for answers on what land is worth investing in, please contact TRIFLOW specialists.