The Benefits Of Investing In Land, By: Amber Sanders

LAND PRICES ARE ONLY GOING TO GO UP

Considering land as a retirement investment: How can we outpace inflation and plan for retirement when our investments are not making much money? What exactly are tangible investments? My dad would say classic cars, but tangible investments can include real estate, businesses, commodities and natural resources like oil, precious metals, minerals or agricultural commodities including livestock. Other tangible investments can be jewelry, firearms, fine art, cars and antiques Diversification is key when investing, so let’s decide to invest in tangibles that we can enjoy before retirement!

Life is about psychological fulfillment and honestly transferring money to an investment account depresses me when my return is at 8% and inflation is at 22%. Those percentages are probably not exact, but they sure seem that way Tangible investments can come with more opportunities to make money. Here’s an example, buying property and leasing it out for hunting, livestock, horse pasture leases, RV parks or camping can bring in revenue. There are more creative ways to make money depending on the type of land and location.

Every month I read the land values of north Texas. Properties are listed by county, price per acre and number of acres that were sold The land prices are increasing every month for every county. This made me think about investing in my future for retirement. Being self-employed, I must create my own retirement I can invest in several types of investment accounts to handle money with the goal to retire, but “What if?” What if I used that same amount of money per month and invested in land. I could also use that land to make some revenue to offset the costs of purchasing. When I Google investments, there are many companies that will invest in the typical money market investment accounts that everyone thinks about when we see the term investment. We are completely missing the idea of investing in land that will never depreciate.

In today’s world, we should try to think of ways to outproduce inflation. It can be done with careful planning and strategic tangible investments Land can be financed for 15 years and at that point in time, it will be worth multiple times of the purchase price. Personally, I have friends that have purchased small pieces of land ranging around 10-20 acres in Oklahoma and the land values have already tripled in several years. They use the land for family camping trips on the weekends and enjoy it before retirement The goal for land investing is to buy low and sell high. Over time, that naturally occurs as land values increase.

Other considerations are the need for land to continue agricultural operations There will continue to be a need for agriculture in our future as our population grows.

Any person interested in the farming industry can utilize one of the USDA’s Farm Service Loans. There are several agricultural programs to help with loans used to buy land intended for farming and other operational costs. The U.S.D.A. has farm loan programs to assist in buying land. The Farm Ownership loan with joint financing is currently at 3 875% There is also assistance in loans for a down payment on farmland that is at 1.875%.

Land prices will only go up from here on out and into our future Land is a great investment that can be used to make income. Create personal long-term goals to include land ownership, even small pieces of land now Land investments will continue to hedge inflation, which is exactly what we need to retire someday.

Disclaimer: This article is an opinion piece for educational purposes only and is not intended for investment advice. The author is not a professional financial advisor.