Why Buy Land Now?

After posting four articles about Baby Boomers and their inclination to buy land, we’ll now begin looking at other groups who are jumping on the land bandwagon and capitalizing on what an excellent investment land can be.

Smaller investors understand the importance of portfolio diversity, and are  finding more opportunities to branch out. In addition to the expanding number of foreign real estate stocks that can be bought through brokers, there are more mutual funds focused on international property.

For the less intrepid investor, there are passive investments. Those with larger sums could put their money into private funds offered by companies like Mr. Blackbourn’s Everest Holdings and Mr. Shapiro’s Timbervest. There are also dividend-paying timber REITs, which hold portfolios of timberland. Their shares are publicly traded.

Mr. Shopoff’s REIT, which is publicly registered but sold privately, will focus on undeveloped and underdeveloped land. The minimum investment is $19,000. “We hope to capture appreciation in excess of 30 percent compounded annually,” Mr. Shopoff said.

Even some buyers without deep pockets are finding ways to afford the home they want to retire to. Some buyers are selling their homes deciding to rent instead in order to use the cash to build a nest egg and buy a retirement home. Prices on retirement homes purchased in resort locations are often volatile, negating the idea that the homes are an investment. That doesn’t mean they won’t appreciate, though.

While all real estate is susceptible to price declines, unique properties, such as those on a lake, tend to appreciate over time at a faster rate than traditional residential real estate because you can’t just replicate these kinds of properties in a subdivision.

Take a quick peek at who the largest landowners in America are by visiting http://www.landreport.com/americas-100-largest-landowners/