Wednesday, November 24, 2010

"Buy Land. They've stopped making anymore." – Mark Twain

These famous words of Mark Twain are even truer today. There is no more land being made, created or built. It is that simple fact that makes this statement equally true. If you are looking for a good investment, raw, vacant land is a great place to start. It is the opinion of many seasoned investors that farm values probably will rise as much as 10 percent over the next five years. The land market is strong and will likely remain strong for years.
By comparison the U.S. home market is expected to only increase by around 1 percent by the end of 2010. Over 50% of baby boomers have let it be known they want to retire to a small town or open spaces. Many of them believe that by buying into real estate they will build and protect their nest eggs instead of putting all their eggs into a 401k.
For many other Americans, the dream of owning a second home still thrives. However, many can’t afford an extra mortgage, so they choose to buy vacant land instead. By investing in raw land, families change their future growth as they can build on the parcel, hold onto it for future generations or sell it later should economics demand it.
If you consider the amount of sub-developing that is happening across the nation and how in many communities people are no longer allowed to sell parcels larger than a certain acreage, if you can find a decent sized property, it is well worth it to purchase it at a reasonable price and hold onto it for at least five years if not more.
Even though the real estate market has cooled, except in the foreclosure and short sale realm, land values continue to hold. This means that the time is now to start looking. As the economy recovers more and the housing market stabilizes in the next few years, the value of land will continue to rise.
There is a lot of wisdom in Twain’s words. "Buy Land. They've stopped making anymore." Investing in land is a choice you can be confident in.

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