Land Investment

Land generates no income, so unlike rental property its entire return has to come from appreciation while holding costs (tax, security, maintenance) drain cash every year with nothing offsetting them. Effective CAGR is calculated on price + total holding costs, not just the purchase price — this is why it's meaningfully lower than the headline appreciation rate.

Land held over 2 years qualifies for LTCG at 12.5% without indexation (or 20% with indexation if acquired before July 2024, whichever is lower) — same regime as property, but land carries none of property's Section 24 rental-income deductions since it typically generates no income.