when one owns land one owns the surface area and everything on it such as trees buildings and animals one also owns the area below and the airspace above its boundaries 1
legally and economically a piece of land is a factor in some form of production although the land is not consumed during this production no other production food for example would be possible without it therefore we may consider land as a resource with no cost of production despite the fact that people can always change the land use to be less or more profitable we cannot increase its supply land ownership can be transferred by the terms of a will by deed when given as a gift and through a business transaction 2characteristics of land and land ownershipland can include anything that s on under or above the ground this means that buildings trees and water that are a part of land are an asset the term land encompasses all physical elements bestowed by nature on a specific area or piece of property the environment fields forests minerals climate animals and bodies or sources of water a landowner may be entitled to a wealth of natural resources on their property including plants human and animal life soil minerals geographical location electromagnetic features and geophysical occurrences lenders of money are extremely attracted to land because it is one of the oldest forms of collateral and unlike a home or a car land for the most part cannot be moved or stolen air and space rights both above and below a property attach to ownership however the right to use the air and space above land may be subject to height limitations dictated by local ordinances as well as state and federal laws land valuationland value is the amount of money that a piece of land is worth this value can be arrived at by an independent real estate appraiser land valuation can be one of a variety of important indicators of a community s financial well being precise land valuation plays a role in various types of financial activities including real estate transactions local government taxes and property investments land must be valued properly in order for these activities to occur and for buyers and sellers to have confidence in them land valuation can also help landowners deal effectively with those who wish to enter a business transaction with them to make use of their land knowing the land value and the expenses associated with ownership in addition to the type of use sought can help the landowner pinpoint what to charge land valuation can be affected by a property s location climate size condition the physical structures on it the natural resources contained within its boundaries such as the presence of water minerals or oil and more for example land near a city public transportation healthcare facilities schools supermarkets and other shopping and a variety of other businesses as opposed to being far from such attractions can command a higher valuation that s because the location can make the land more appealing to those who might want to live in the house that s on it or to those who might wish to develop it for residential or commercial purposes the greater the appeal the higher the land s valuation could be as for natural resources affecting valuation take gas and oil because natural gas and oil in the u s are being depleted the land that contains these resources can be of great value in many cases drilling and oil companies pay landowners substantial sums of money for the right to use their land to access such natural resources particularly if the land is rich in a specific one land useland use refers to the use of land by human beings for their business and cultural activities land s primary use is for residential commercial industrial recreational agricultural and tranportational purposes ongoing land use can affect the condition of the land its natural resources and the environment these condition changes in turn can pose problems for the health of humans and other animals living on the land as well as the viability of the land itself agriculture and development uses are areas of concern for the u s environmental protection agency 3land use is governed by municipal regulations and local zoning laws town and city planners and other organizations focus on how land is used to understand the outcomes of such use they can then provide guidance for its future use and potentially effect change in land use laws investing in land for developmentland s main economic benefit is its scarcity many investors purchase land with the intent of developing it development can be for commercial or residential use and is subject to the aforementioned zoning ordinances and local regulations raw land investments can produce significant future cash flows that are easy to predict once secured but developing land can be very costly and uncertain the associated risks of developing land can stem from taxation regulatory usage restrictions leasing and selling a property political events and even natural disasters 