While the housing part of the real estate market slowed down the past few years, the raw land part of real estate has not only maintained, but it has heated up. If you have thought about buying raw, vacant land now is the time. Many experts say that they haven’t seen this much movement in the market in years.
The question many are asking is why? What good is raw, vacant land when the economy is as tight as it is right now? With job losses at an all time high along with foreclosures, why on earth is vacant, raw land such an attraction? Why would anyone buy something such as vacant land that they can’t use today?
The questions above are the answers too. Because of the high unemployment rate, many people that have been sitting on vacant land and need to sell it quick. They are willing to sell it below market for a boost to their cash flow. This is a last ditch effort for many to get the cash they need to catch up their payments on their primary residence as well as their monthly bills.
Another reason land is selling as good is because there isn’t any more land being made. What we have today is all we are going to have. So those people with money in the bank and jobs going good today are looking for someplace to invest that money that is safe.
This is one reason the generation referred to as Baby Boomers are buying raw land. They have seen the economy as it is now and as it was in the 80’s when the stock market crashed. They want to put their money in something that won’t disappear and as we said, land is here to stay, its limited resource and there won’t be any more made.
There are people that want to buy a second home for either retirement or vacations and maybe don’t have the money to do so right now. So they are buying vacant lots with plans to build in the future. They can start getting things done little by little such as septic, electric and water as they can afford it. Then perhaps buy a travel trailer or mobile home to sit on it while they build behind it.
Real estate experts believe that farm values are going to rise at a rate of 6 percent to 10 percent over the next five years. It is also expect that the median U.S. home is going to increase by 1.2 percent by the end of 2010. The economy is weak, but it is expected to turn around. Those people that have lost their jobs and home and have struggled these last few years will become employed again. Many are going to look for ways to get themselves in better position for the future and put their money where it will be safe. Again, they aren’t making land anymore!
Some people are even considering timberland as an investment purchase. This land has beaten the stock market for as far back as data is available to track both. While stocks have increased each year by nearly 12%, the total return on timberland was almost at 14%. Timberland is not familiar with activities on the on the stock market.
So expect the demand for land to remain strong for the next few years over any other forms of real estate. Polls taken lately show that at least 73% of those asked and responded expect to purchase land within the next 12 months. So buy yours today before they run out of stock! Because we all know, they aren’t making it anymore!