An Introduction To Investing In Land

Investing in Raw Land

Investing in land has proven to be one of the best long term investments that anyone can make. If you are thinking about choosing an investment, but you aren’t too familiar with land or acreage investing, keep reading and I’ll tell you some great basic information.

Why Is Investing In Land A Good Idea?

Think about this for a while. Have you heard of the cities that are growing so rapidly that they are called ‘Boom-burgs’? Have you recently considered the fact that the population of the United States grew over 13% from 1990 to 2000 and many other countries are rising much faster?

All of the people need somewhere to live. More than that, all of these people need somewhere to work and somewhere to play. Yes people live, work and play inside buildings. But these buildings need to be placed on land.

Why have I told you all of this? I am trying to show you that the demand for land is increasing at an insane rate. The problem is that we only have so much land to use.

Let’s compare land to a collectible baseball card. If a collectible company produced only 100,000 baseball cards of certain player who, three years later, becomes wildly popular, the demand for that collectible would increase. Since there is a finite supply of those collectibles (100,000), the price would go through the roof.

This is the basic principle of supply and demand and it is a very important concept if you are thinking about investing in land. As more and more people are added to the world’s population the demand for land is going to keep rising. But since there is a finite supply of land, meaning we can not make any more, the price of land has no where to go but up!

Will Investing In Land Always Make Me Money?

It would be incorrect to say that all land gets more valuable all the time. There are many factors that affect the value of land. Land can decrease in value if the economy of the surrounding area decreases. But historically, we have seen land prices go up over the long run.

That means that if you start investing in land now, you may not see a great return in the very near future. However, over a number of years you can pretty much expect that your land will become more valuable.

If you are thinking about land investing, think about the location of that land. If it is in an are that will be expanding soon, that land will probably become more valuable. But if you are looking at investing in land that is in the middle of nowhere, it might take a while before anyone wants to buy it. That means the value of that land might not rise very quickly.

Land investing really is one of the best decisions that you can make for yourself and your future. Unlike almost every other investment out there, land has a history of only growing in value over time. Now that you are interested, you need to start doing some research.

Contact an agent and talk with them about what you would like to do. Surely, they will have even more ideas for you. Plus, they can show you all kinds of listings that might spark your interest. I wish you good luck as you enter the exciting world of investing in land.

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