Buying Land – the benefits of long term investment

By MyVine | September 25, 2011

All the investors, especially today, should be interested in investing for long term  by purchasing land to diversify their portfolios. With currency exchange rates low and currency in general in a really unconfortable situation, investments in lands is a great way to put excess cash flows in a place where they will grow in value. Recreational land is selling in the United States in a price range of $1000 to $20,000 per acre. You can invest in land;
- to hold for future sale,
- to develop and sell off in parcels,
- to use for hunting and mineral rights,
-to use for forestry and
- simply for family or group recreational activities.
When you purchase a land expecting a long term investment, it is good to walk the land being considered to see if there is water access on rural undeveloped land. If so, this will increase the land’s value over land with no water access of any kind. If land is purchased without ponds, lakes or streams, the land owner/investor can spend some money into the thousands to create ponds and lakes, but this is a worthwhile investment as the value will increase substantially. Access to the property is also an investment for upgrade worth making as getting on and off the property is always necessary and in the future will make the land more valuable to sell to developers who will be putting roads in for subdivisions.

Before purchasing a land for sale as a long term investment, you have to make some points clear.  Depending on the type of activity or use planned for a the land, an investor can make good use of the land for any number of agricultural uses, such as pulp wood harvesting, hardwood harvesting for furniture, large pines for lumber and pastureland for leasing to farmers who have grazing livestock.

Investment in land is a good way to provide a retirement cash flow after working for more than fifteen years, instead of the traditional pension plan, which we have seen lose up to 50% of its monetary value in the last two years because of turmoil in the stock market. Investment land has not lost as much if any value as small lots with houses on them, which have fallen in value sharply in the last two years. Since the housing bubble burst and banks consequently collapsed with monetary repercussions world wide, rural land has become a preferred place to store away cash.

 

 

Topics: Buying Tips, General, Investing | Comments Off

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