Posts Tagged ‘rural land’

How to Make Wise Acreage Investments

With economic uncertainty, it becomes harder each day to find an investment that is not only safe, but also provides a suitable return on your money. While others look to bonds or gold,  knowledgeable individuals turn their attention toward acreage investments.

Investing in land makes perfect sense. With the population growing at an ever-increasing rate, the demand for land will only grow greater as time passes. What’s more, land is a finite resource. While we can always discover and mine more gold or drill for more oil, we cannot find more land. So while it’s possible that the price of gold may go down as a result of new discoveries, or that the price of oil might plummet from the use of alternative fuels for transportation, land can be counted on to retain its value.

When buying land, it is not the location that makes the difference; rather, it is the per-acre price that is important. Two investments may look the same, each costing $25,000, but one is for 80 acres and the other is for five acres. If you look closely at the two different options, it becomes plain which is the better investment. The 80 acres are valued at $312.50 per acre, while the five acres are valued at $5,000 per acre. The goal of any person investing is to buy low and sell high. The savvy investor will always go for the 80 acres at the lower per-acre price.

Acreage investments have never been easier, and the Internet has made it exceedingly simply to find and compare countless offerings—in the search for the lowest per-acre deals available!

To view some excellent acreage investments, please click here.

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.

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.

To view cheap rural land for sale CLICK HERE

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Benefits of Buying Country Acreage

The traditional real estate investment approach is to buy income properties (single family homes, duplexes, apartments, and commercial buildings), or predevelopment land near population centers that are in the path of growth. In many instances, however, simply buying unimproved country acreage in the “boondocks” can provide safer and more predictable financial results.

The least expensive part of an investment can often be the initial funds needed to acquire the asset. The most expensive part of an investment, however, can sometimes be the capital required to develop or improve the asset after it is acquired. In the case of income properties or land for development, the cost of maintaining the buildings or paying for the development can be very high. Raw land, however, costs very little to own or maintain.

For instance, let’s say you buy commercially zoned land in the city for $500,000, then spend another $1 million erecting a duplex and another $250,000 maintaining it through the years, and eventually sell the property for $2 million—then you would receive $2 million on a $1.75 million investment, or a net of $250,000.

Wouldn’t it make more sense to buy cheap acreage in the “boondocks” for $500,000, spend practically nothing on maintenance or development through the years, and resell it for $1 million at some point in the future? Using this scenario, your potential profit would be $500,000 on a $500,000 investment—instead of $250,000 on an investment of $1.75 million.

While it is a little understood real estate investment niche, sometimes just buying cheap country acreage and holding it for the long haul can be the best investment approach. In this manner you are simply relying on time to create a profit, instead of costly maintenance and improvement expenses.

To view country acreage for sale, please click here.

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