Long term investment Research Paper Example | Topics and Well Written Essays - 1250 words

Long term investment - Research Paper Example e discussion will expound on various examples: long-term investments, reasons for investing, how to identifying the best form of investment, and how people can  apply  long-term investment in personal and financial situations. The discussion focuses on helping people understand and apply the information in their personal finances. According to Norris (2010), there are many examples of long-term investments. Land is one of the long-term investment option that most of the people use. A piece of land continues to be a valuable asset because  virtually  no one can survive without land. Preference of land is high, because conversion into money is not within a short  duration  of time and so the benefits increases. Land  mostly  appreciates rather than depreciating and so it serves as a  guarantee  to increased amount of money than the initial cost. It is an excellent  choice  of long-term  investment  because once available it can be developed. Once the  development  takes place it increases in value, and it is  permanent. Increased population makes the  demand  of land higher on a daily basis. Various studies reveal that due to the increased population size houses is in high demand. Shelter is one of the human basic needs and, therefore, investing in real estate for rent guarantee high returns within minimum  duration  of time (Norris, 2010). Rental buildings require investment in just the initial capital to kick-start and then enjoy the  rent  income for the rest of the time (Tyson & Brown, 2012). A house is a  fixed  asset, which means that it is permanent unless a natural calamity strikes. Various financial stakeholders have taken an  initiative  in funding  building  of rental houses through loans and mortgages. It is with this reason that most of the people are choosing it as a  method  of long-term investment. The risks involved in rental houses are minimal and, on the other hand, the advantages are making it a favorable  choice  of investments. Stocks or