Tuesday, October 28, 2008

Bare Land For a Bear Market

The current market meltdown has given me pause to think why did I not put more in land an less in the stock market. The market can and does gives good returns for the long term investor but also can provide unwelcome anxiety and sleepless nights like as of late. Land on the other hand is not going anywhere and if you are careful in where you buy should have a steady appreciation. Land values do fluctuate some but not to the extremes of the stock market usually. There is some truth they are not making any more of it (except Hawaii's volcano eruptions maybe) and as populations increase land values tend to go up

If you are considering buying land note that some land types such as waterfront tend to appreciate the fastest but other types such as commercial can have nearby development increase their value. Timberland can grow thousand of dollars per acre in timber value over a long term period literally on top of the appreciating land values. Land on the fringe of growth areas can be bought for less and held until development enters the area. The bottom line is that any wise investor should consider adding land ownership into their portfolio. There is also the added attributes that land is something you can touch and have pride in, walk on, go hunting on, hiking on, build a second home on and will to your children or grandchildren. However, before buying land always research your local real estate market, look at nearby sales on on-line tax data, talk to locals about the area and check of course with a local Realtor. You'll sleep better for it.

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