Archive for the ‘rural land’ Category

Benefits of Cheap Wyoming Land

In order to have the best chance of making money investing in rural land, three conditions are required.  First, a large supply of acreage is needed. Next, the prices must be relatively low. Finally, there must be a minimum of restrictive zoning and land use regulations in effect. Of all the states, perhaps cheap Wyoming land offers the best opportunity in this regard.

Only the larger Western states would offer the first criterion, but only Texas, South Dakota, and Wyoming combine the last two conditions of relatively low prices with a minimum of restrictive zoning and land use regulations. South Dakota and Texas basically have very few subdivision regulations, and Wyoming land is exempt from subdivision control if sold in 160-acre sizes or larger.

New Mexico has a large supply of relatively low-priced acreage—but there are restrictive subdivision regulations. Arizona land is priced too high. Nevada land is relatively low-priced, but state laws prevent the division of land into smaller than 640-acre sizes. Land in Colorado, Idaho, Montana, Oregon, Washington, and Utah is all higher priced, and in addition, these states have restrictive subdivision regulations. Alaska, surprisingly, is also higher priced and contains more restrictions that Wyoming, Texas, or South Dakota. Furthermore, Alaska can be extremely cold and frozen, and it isn’t considered that easy to access by people in the lower 48 states.

Wyoming, however, has it all! It is relatively easy to get to; land prices are among the lowest in the nation; there are no subdivision regulations for land 160 acres in size or larger; property taxes are very low; and there are no state income taxes.

Those interested in low priced rural land certainly need to investigate all the opportunities available with cheap Wyoming land!

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Wyoming Land for Sale Offers Exceptional Opportunities.

Wyoming is called the “Cowboy State” and is the epitome of the Old West. As late as 1919, just after World War I, Cheyenne still had more horses than cars. The state is the 10th largest in geographic size, with 98,000 square miles, yet it has a population of only 540,000 people, the least of all 50 states. With so much land and so few people, it is easy to understand why Wyoming land for sale can offer exceptional opportunities.

Wyoming is also known as the “Equality State” because Wyoming women were the first in the nation to have the right to vote, to serve on juries, and to hold public office. In 1894, Estelle Reel became one of the first women in the United States elected to a state office, that of Wyoming State Superintendent of Public Schools. In 1924, Mrs. Nellie Tayloe Ross was the first elected woman governor to take office in the United States.

The state is very conservative politically, and the last Democrat to win a presidential election was Lyndon B. Johnson in 1964. Since then, Wyoming has voted Republican in every presidential election.

Regarding rural land investments, some of the lowest-priced land in the United States of America can be acquired in the southern part of Wyoming, along the I-80 corridor. If a person knows where to look, land can still be found in that region for under $300 per acre, or even cheaper. Not only are land prices very appealing, but property taxes can be as low as 10 cents to 20 cents per acre annually. Finally, subdivision regulations are among the most lenient in the nation. As long as land is divided into parcels that are larger than 140 acres in size, there are very few bureaucratic restrictions or controls.

If a person can find Wyoming land for sale under $300 per acre that can be purchased under beneficial terms, then future profits are simply a matter of holding the land for a long enough period of time.

To view Wyoming land for sale, please click here.

Wyoming Land for Sale at a Cheap Price

Most Wyoming real estate investors take the traditional approach of acquiring land near population centers, like Casper or Cheyenne, and then rely on future development to increase property values. Simply buying a large tract of Wyoming land for sale cheap, located in a sparsely populated area of the state, and allowing time and inflation to create higher values, probably would be boring for them.

The latter approach might be boring to some, but it is an infinitely safer and more reliable method of making money, over the long term. Consider that nothing has to happen, and the owner doesn’t have to improve or develop anything, in order for a tract of cheap acreage to increase in value in future years. It has been proven time and time again that through the years, paper currency always becomes worth less and less, and finite assets such as land always become worth more and more. Therefore, time becomes the ally when buying and holding cheap land.

Conversely, there are countless cases where real estate investors have acquired expensive land near major cities, only to go bankrupt when the economy took a nose dive, politics prevented a needed zone change, building plans weren’t approved, or the financing suddenly became unavailable. While it is certainly possible for urban developers to make substantial sums of money over a short span of time, there usually is a lot more risk and turmoil involved.

Buying a large tract of Wyoming land for sale cheap, even in the middle of the remote Red Desert, and hanging on to it for many years, is almost a “no-brainer” to create greater future values. As history has proven, it is virtually impossible to lose money owning cheap land, if it is purchased cheaply enough and held long enough!

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Wyoming Land a Unique Investment

What makes Wyoming land so unique for investment and speculation opportunities is the abundance of “checkerboard” land created by the Pacific Railroad Act of 1862. Approved by the United States Congress and signed into law by President Abraham Lincoln, this bill gave 10 miles on either side of the tracks—later increased to 20 miles—to the railroad companies to help offset the cost of constructing a railroad to the Pacific Ocean. The United States Government retained half of every township given to the railroads by keeping alternate sections. This resulted in the ownership of these townships resembling a checkerboard with every even-numbered section retained by the government and every odd-numbered section owned by the railroads. Through the years, the railroads resold most of their holdings to private buyers.

For private owners in the checkerboard area, there is a disadvantage offset by a huge benefit. The disadvantage is that it is almost impossible to secure “insurable access” through Bureau of Land Management property; therefore, power and utilities seldom are available, and banks won’t loan for construction where there isn’t insurable access. “Physical access,” however, is a different matter, as access to private property has never been blocked since the Pacific Railroad Act of 1862 was passed. Furthermore, title companies will insure ownership of private land in the checkerboard.

The huge benefit for private owners in the checkerboard is that the public can’t cross private land to get to public land, but private owners can cross public land to get to private land.” This amazing policy results in private owners being able to access millions of acres of public land that the general public can’t get to, enjoy or even visit (because to do so would constitute trespassing on private property)!

This unique ownership feature, coupled with a low purchase price, makes Wyoming land in the checkerboard area an asset that can offer substantial future potential. Where else in the entire United States of America can one find more land for less money?

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What is a Farmland Investor?

farmland investor, like a hedge fund investor, can make large sums of money if he is extremely knowledgeable and lucky, or he can get wiped out if he doesn’t know what he is doing and is unlucky.

Buying land for farming, at the right price and terms, is just the initial step in a very complex investment scheme. After acquiring the land, the right crop must be planted, operating expenses must be controlled, the weather must cooperate, and the price for the crop (which is really nothing more than a commodity) at harvest must be favorable. If all of these “moving parts” (many of which are beyond the control of the farmer) aren’t lined up favorable, the losses can be staggering.

Suppose a farmer paid $7,000 per acre for 500 acres of irrigated farm land, and during a five year period made a profit of $200 per acre one year, broke even the second year, and lost $300 per acre, $100 per acre, and $500 per acre for the last three years. Simple mathematics reveals he would be down, over the five year period, the equivalent of $700 per acre. This means his 500 acre farm would have had to increase in value 10% just for him to break even.

So if farming relies, in part, on land increasing in value in order to show a profit, why not simply invest in cheap land and forget all the expenses and complex operations required in farming? Instead of investing $3.5 million for an improved 500 acre irrigated farm that requires additional capital and operations, wouldn’t it make more sense to use the same $3.5 million to purchase 14,000 acres of cheap, dry prairie land for $250 per acre? Thus, at the end of five years, if the 14,000 acres increased in value by 10%, the $350,000 increase would be pure profit (and not required just to “break even”)!

Anyone interested in becoming a farmland investor might be well served to at least analyze the merits and simplicity of investing in large tracts of cheap land instead!

Note: This article is not intended as an in-depth review of farming operations and profit potentials; rather it is a reminder that farming operations always require greater capital and greater financial risks than does the activity of simply owning cheap land and relying on time and inflation to cause higher values.

For the farmland investor to review alternative investments, click here.

The Best Hedge Against Inflation

In broad economic terms, inflation is the devaluing of purchasing power due to an increased influx of printed currency. A hedge is an investment opportunity that can help shield a person against such economic instability. Typically, hedges are things that have a finite supply. Stocks, bonds, automobiles, machinery, equipment, and even food, would make poor hedges, because all of these items can readily be reproduced and can easily become perishable. On the other hand, an asset such as land would make the best hedge against inflation because no one can make any more of it, and it isn’t perishable.

Since the founding of our nation 235 years ago, raw land, as a dependable financial asset, has withstood the test of time. As a prime example, let’s suppose Ben Franklin, in 1776, had placed $10,000 of freshly printed currency in one safe deposit box in Philadelphia; and in another safe deposit box he place a deed for 10,000 acres that were located somewhere in the “wilderness.” Today, the $10,000 in 1776 currency would be practically worthless (inflation over 235 years would have destroyed most of its buying power), yet the 10,000 acres, depending on their exact location, would be worth millions of dollars.

Small residential rental properties (single-family homes and duplexes) can also serve as an investment hedge, but there are many potential liabilities involved. Tenants can cause serious damage; maintenance can be quite high; property taxes and insurance can eat into profits; and in a serious recession tenants can move out and the income ceases.

In summary, perhaps the very best hedge against inflation would be to simply acquire a large tract of cheaply price land in the “boondocks” and wait, wait and wait!

To view land that would serve as the best hedge against inflation, please click here.

What are the Benefits of having Land Investments?

Land investments are significantly different from stock market investments in several very important aspects.

  • In order to purchase $50,000 worth of stock, you usually have to put up $50,000 in cash. Yet a person can often purchase $50,000 worth of land by making a down payment of only 20% ($10,000) and financing the balance.
  • A stock investor’s percentage of ownership in a public company can be diluted if the Board of Directors elects to issue more shares of stock. Conversely, a land investor retains 100% ownership of the land.
  • Stock owners are subject to the quality of the management running the company: good management can result in a higher stock price, and poor management can cause a stock price to sink. Landowners are not at the mercy of management (since there is none)—they simply wait and rely on time (or some other positive development) to increase values.
  • During the last 100 years, quite a few large, prominent Wall Street companies “crashed” and went out of business. However, every single acre of land is still here today and is worth more money than it was 100 years ago.

Historically people have made huge sums of money with both stocks and land. People have also lost large sums of money with both stocks and land. The glaring difference, however, is that if a land investor can afford to hold onto a piece of land for a long enough period of time, then the value, at some point in the future, will always be higher than the original value. But that luxury doesn’t exist with stock in a company that went bankrupt and was liquidated.

Land investments are one of the very few assets guaranteed to still be here in the future, and one that is assured to eventually have a higher value.

To view land investment opportunities, please click here.

Where to find Cheap Rural Land for Sale

The most expensive land for sale in the United States is situated in the downtown sections of the larger cities and the least expensive land is located in the outlying rural portions of the nation. The best deals regarding cheap rural land for sale anywhere in the United States of America will be found in the larger Western states: Texas, Wyoming, South Dakota, New Mexico and Nevada. In the remote rural areas of these states land can still be found for prices under $500 per acre.

The advantage of finding cheap rural land for sale is that purchase prices will generally be very reasonable and easy seller financing is usually available. Of the various investments available to people today – rental properties, commercial buildings, business franchises, oil drilling partnerships, commodities, bonds and stocks – cheap rural land is the easiest to acquire, the easiest to maintain and in 25 years from now is the most certain of all the other assets to still be here and to be worth more money than it is today.

Cheap rural land is a finite asset, meaning there are only so many acres available in the United States and there is no way to manufacture more land. The United States of America contains 2.4 billion acres of land and 100 years ago, in the year 1910, the population was 92 million people. That equated to 26 acres per person. Today there are still 2.4 billion acres of land in the United States and the population is 307 million. This now equates to only a little over 7.5 acres per person. Thus is there any doubt but that cheap rural land for sale today will become much more valuable in future years?

As evidence of this inevitable price increase consider that in 1990 cheap rural land in parts of Texas, Wyoming or South Dakota could have been purchased for $50 per acre or less. Today some of that same land is now priced at closer to $500 per acre, an increase of 10 times the 1990 price.

How did the stock market perform over this same period? In 1990 the Dow Jones was 2900 and today it is around 11,000, an increase of approximately 4 times the 1990 price. What about the value of cash over the same period of time? According to the U. S. Bureau of Labor Statistics it takes $167 today to buy the same goods and services that $100 purchased back in 1990. In other words inflation robbed the dollar of 40% of its purchasing power is just 20 years time.

Finding cheap rural land for sale and purchasing under beneficial terms might well be one of the surest and safest methods of building wealth in future years. History has taught us that it is virtually impossible to lose money owning large tracts of rural land if purchased cheap enough and held long enough.

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