There are many more reasons to invest in LAND, however I have identified the five I believe to be the most important. Landowners profile are quite different and we are all motivated by different things and circumstances. Following are the most important reasons from my ‘point of view’
1. Diversify portfolio – We all know that we should not put all our eggs in one basket! Portfolios can be diversified by investing in equities (I prefer indexed funds), bonds (short term, medium term and long term) and precious metals. Of course another way to diversify is investing in LAND. There are others ways to invest in real estate such as commercial and rentals, but LAND offers a low maintenance option. And you remember the old saying…….”They are not making any more of it” so there is a fixed supply.
2. Generate income – Let me say any asset should be generating income for you, otherwise why would you own it and that goes for LAND. Income can be generated through agriculture, farm leases, hunting leases or timber. Genetically improved pine trees can often be thinned twice, then clear-cut before the age of 30. Another way to generate income when selling the property is to offer seller financing. The receipt of principal and interest payments can often make the ‘Return On Investment’ look quite appealing.
3. Recreation – This one is hard to quantify but is undeniable a big one! This one has more to do with quality of life, time to decompress from all the stress of life and work. What better way to spend your time away from the city with family and friends. Get outside and enjoy the great outdoors. LAND provides opportunities like hunting, fishing or just riding an ATV through the woods.
4. Legacy– For some leaving a legacy is important. A legacy can be an amount of money or property left to someone in a will. Leaving a tract of land, particularly an income producing tract is quite an accomplishment and might even stay in the family for generations.
5. Environmentally Conscious – We hear so much about the environment these days. I know first hand that the most environmentally conscious people are LANDOWNERS! As a landowner, you have a special privilege to be a steward and you may exercise that right by protecting special places (rock outcrops, bluffs, unique vegetation, old growth patches of woods), wetlands and water sheds that feed our creeks and rivers. What an awesome privilege!
Time to get going! There are many opportunities out there and if you need assistance be sure to engage the help of an Accredited Land Consultant.
G. Kent Morris
Accredited Land Consultant
Associate Broker with Bickerstaff Parham Land.