Owning Land as a Commercial Investment
Land is the part of the earth’s surface that is not covered by water. Synonymy: Coast, coastline, shore. Antonyms: sea. Plural noun: lands. Modified noun: land, grounds, ground, fields, open space, open area. More property, acres, acreage, estate, lands, realty, real property, real estate, landholding, holding; countryside, Verb: land, 3rd person present; lands, past tense: landed, past participle landed, gerund or present participle: landing.
Land, sometimes referred to as dry land, is the solid surface of the Earth, which is not covered by water. The division between land and ocean, sea, or other bodies of water. The differentiation between land and water varies. In some places, it is sharply defined by solid rock landforms coming directly to the edge of the water. In other places, land may slowly give way to marshes with no clear point at which the land ends and a body of water has begun. Land, particularly geographic locations and mineral deposits, has historically been the cause of much conflict and dispute; land reform programs.
As a tangible asset land is represented in accounting as a fixed asset or a capital asset In economics, land comprises all naturally occurring resources whose supply is inherently fixed. Examples are any and all particular geographical locations, mineral deposits, and even geostationary orbit locations and portions of the electromagnetic spectrum. Natural resources are fundamental to the production of all goods, including capital goods. Location values must not be confused with values imparted by fixed capital improvements. In classical economics, land is considered one of the three factors of production (along with capital, and labor). In some cases, land may be merged with capital due to the relatively small importance that land has in industrial and service sectors. Income derived from ownership or control of natural resources is referred to as rent.
Land was sometimes defined in classical and neoclassical economics as the ""original and indestructible powers of the soil. Georgists hold that this implies a perfectly inelastic supply curve suggesting that a land value tax that recovers the rent of land for public purposes would not affect the opportunity cost of using land, but would instead only decrease the value of owning it. This view is supported by evidence that although land can come on and off the market, market inventories of land show if anything an inverse relationship to price.