Why Buy Land
Are you aware in the midst of a slumping housing market that land (acreges) in many places are appreciating in value?
Acreages are selling better than homes in subdivisions
Land is the place to be in 2008 & 2009
Some of you are thinking, “So what – are people really purchasing land, especially when prices for houses in many places are falling?” The answer is a resounding, YES!
Retiring Baby Boomers
According to a poll commissioned for the National Association of Realtors (NAR), 60% of Boomers want to retire to a rural area or small town. Also, one in four Americans born from 1946 to 1964 own more than one property, according to a survey of nearly 2,000 Boomers by Harris Interactive.
Boomers have “an almost insatiable desire for real estate,” David Lereah, the NAR’s chief economist said in a statement. They see real estate as “a way to build and protect a nest egg.”
Real estate ownership has become a key component of the Boomer’s retirement plans. The July 2008 issue of Business Week reports that “Baby Boomers are retiring at the rate of 10,000 every 24 hours …within 2 decades a record $17 trillion will change hands from corporate pension funds and 401(k) retirement plans into the hands of retirees.” This group will continue to drive a portion of their investment portfolio into real estate, specifically raw land, fueling the demand for land like never before.
Timberland
DailyWealth – "Timberland has actually beaten the stock market since 1960 (as far back as data goes). The total return on timberland was better than the stock market, at nearly 14% return a year! Another nice thing is timber is completely uncorrelated to the stock market. It makes sense... the trees have never heard of the Nasdaq or Housing Bubble... and they don’t know what a War on Terror is."
New York Times – “The land market has never been stronger.”
Per the New York Times, “The real estate market may have cooled, but investor demand may soon be heating up for at least one type of property: Land!”
Stating, “The time is ripe to start looking; I haven’t seen this market in 20 years.”