Physical Characteristics of Land
What are physical characteristics of land?
Did you know that there are physical characteristics of land? I bet not. There are also economic characteristics of land, but we will save that for another article.
There are three physical characteristics of land as follows:
1 – Immobility
Immobility is an important and unique characteristic of land, which has a significant impact on its value. Since land cannot be moved, where the land is located will have an enormous influence on its value. Additionally, property taxes levied on land can vary significantly from location to location.
Example: Ford has this cool truck called a Raptor. When the second generation of the truck came out in 2017, many Ford dealerships were charging over MSRP for the car. If they were charging $10,000 over MSRP in Phoenix, AZ someone who lived in Phoenix might want to search outside the state for a better deal. A savvy shopper may have been able to save thousands by buying the car in Ohio and having it shipped to Phoenix. The car is the same no matter where it is purchased and can be moved around.
Unfortunately, since land can’t be moved this same scenario would not be possible. A 2,400 square foot house in Phoenix is only worth what someone is willing to pay in Phoenix. If the land could be moved to the beach in Laguna, then it would be worth a lot more. However, it can’t. It suffers from immobility, which is a physical characteristic of land.
2 – Indestructibility (durability)
Have you ever felt like you were indestructible? My twelve-year-old son has. He feels completely indestructible. Unfortunately, in reality, he doesn’t have this physical characteristic of land. It is indestructible.
Did you know property insurance doesn’t cover land? It only covers the improvements to the land. Why? Indestructibility. If a house burns down, the land is still there, and the house can be rebuilt.
3 – Nonhomogeneity
Just like a fingerprint, no two pieces of land are the same. That’s nonhomogeneity. They may look the same, but they are not. For one thing, their location is different. Additionally, the type of buildings located on the land are probably different, as is the size and shape of the property. Other terms used to describe this physical characteristic of land are heterogeneity and uniqueness.
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