Posts Tagged ‘benefits of land investments’

Investing in Land can be Rewarding!

Investing in land can be much more fun and emotionally rewarding than investing in the stock market. Stock certificates are only a piece of paper—but land can be visited, walked on, camped on, and hunted on. If ever needed, land can also be used as a getaway retreat and as a refuge from society.

In the past, a large tract of rural land was very limited as to its usage. Mainly, such properties were used for little else besides livestock grazing. Today, however, there are many potential uses for large tracts of rural acreage that can be investigated. Following is at least a partial list of potential uses.

  1. Mining activities
  2. Petroleum exploration and production
  3. Wind energy farms
  4. Water rights
  5. Solar power
  6. Geothermal
  7. Rights-of-way easements for pipelines and roads
  8. Fossil discoveries and excavations
  9. Hunting camps
  10. Recreational subdivisions
  11. Signage
  12. Sand and gravel sources
  13. New technology that might revolutionize agricultural operations
  14. Landfill

As can be seen above, investing in land today can open up many possibilities that previously didn’t even exist. No one can really determine with 100% certainty what profitable uses for land in the future will bring.

For those interested in investing in land, 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.