Land as an Investment

What is an Acre of Land Worth? Land is historically a sound investment. Most people have heard the old saying, “Buy land, they’re not making any more of it.” by Mark Twain.  Land has a certain degree of scarcity that contributes to its value, like gold and other precious metals.

Per Franklin D. Roosevelt “Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.”

Unlike other forms of investments, such as stocks, bonds or commodities, land is tangible. Land is a long-term asset that will not depreciate or wear out over time. It cannot be destroyed or stolen. Land will never have a value of $0, because it is in limited supply and high demand. Land is a hands-off Investment, there are no issues to deal with that arise when investing in a home or a commercial building.

America has been called “The Land of Opportunity,” land equals opportunity. It is exactly that because of the historical value and multitude of uses of land that it presents so many opportunities as an investment. You have flexibility to grow crops, graze cattle, plant trees based on whatever has the highest rate of return. Land has potential for development and there is always a highest-and-best-use consideration for a property whereas a fixed asset is fixed. Or just sit on it and do nothing! Owning land is an avenue to having revenue generating avenues as well as owning an asset that has real value. As the population continues to grow, the value of land will continue to appreciate.

It is exactly because of the historical value and multitude of uses of land that it presents so many opportunities as an investment. You have flexibility to grow crops, graze cattle, plant trees based on whatever has the highest rate of return. Land has potential for development and there is always a highest-and-best-use consideration for a property whereas a fixed asset is fixed. Owning land is an avenue to having revenue generating avenues as well as owning an asset that has real value. As the population continues to grow, the value of land will continue to appreciate.

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By | 2019-01-21T04:28:36+00:00 December 30th, 2018|Trending Now|0 Comments