Why Invest in Raw Land?
Land is a commodity that runs in cycles that typically range between 7-8 years between the top and the bottom. For example, in July of 2006, the raw land market took a dive. First, buyers becomes scarce. This happened at almost the precise moment that “asking” prices reached their peak. In one North Carolina mountain county, the asking price for 100+ acres reached a peak of $42,211 per acre – while the average actual selling prices for large parcels was around $5,500/acre. Motivated land buyers at that point said simply “I don’t think so!” – and went home.
Today, asking prices have leveled and buyers have come back. They understand that buying land gives you options. you can: 1) BUY, 2) SELL, or 3) HOLD. While holding it, you can also 4) build a home on it, 5) camp on it, 5) hunt on it, 6) improve it, 7) hike on it, 8) lease it, 9) trade it (tax-deferred), 10) sell marketable timber, 11) put it in your IRA, 12) mine it, 13) donate it, 14) give it away, 15) devise or will it.
In times of uncertainty, land may also be used as your secure, strategic location, in case of a currency devaluation, national crisis, or complete breakdown of society as we know it. Think that’s a joke? Approximately 60% of the buyer phone calls we’ve received in the past year have been from individuals with that thought on their mind.
What ever your investment motivation, it’s a great time to invest in raw land which can provide a host of benefits not available from the stock market. The North Carolina mountains is the place – and the time is now!