Reasons to Add Land to Your Investment Portfolio in 2015
Land is a limited resource. While many people buy gold and silver, times are changing. With an ever growing US population rising from 313 million people to 316 million and development on the rise, its time to start looking at land as a solid investment.
Diversification is key in 2015, and not having land in your portfolio is a recipe for disaster.
Construction is on the Rise
Housing permits are on the rise. In 2015 alone, there have been over 1 million building permits granted. These permits are often using raw land, like those added to an investment portfolio, as the location for their building.
As more and more permits are given out, land prices will rise.
Single family housing also rose by 7.2% to 728,000 permits. Many of these homes will be in neighborhoods, but others will be on raw land that is affordable to purchase.
Land Prices are Steadily Rising
The Wall Street Journal ran an interesting article reinforcing the profitability and rising of land prices since 2013. Stating that Mr. Nathan could barely sell his land for $45,000 in 2012, the investor was able to sell over 250 lots for an average price of $96,000 in 2013 in just 45 days.
New homeowners and builders are in dire need of land.
Investors are in the perfect situation to buy land as prices are rising for the third time in 3 years. Land values rose by 13% in 2012 and have rose each year since.
ROI Levels are High
Investors that follow the indexes know that achieving a 13% return on stocks year to year is a dream. While some mutual funds may offer such returns, fees lower this figure greatly. Investors also need to look into the longevity of stocks versus their land counterpart.
Stocks will fluctuate based on economic conditions and many businesses will close their doors. For an investor, this equates to a total profit loss.
Land is an asset that is physical and is owned. Even during an economic recession, land can be held, and the price will rise as demand grows again. The same cannot be said for stocks or other investments that are not tangible items.
Land sales are also in the heart of the country. Texas, Louisiana, Arkansas and Kansas accounted for 26% of all land sales. These hot spots are filled with affordable land parcels averaging $5,600 per acre for agricultural land.
Investors are financing land purchases for 31% of all land sales. This is also another avenue to make money from interest off of the sale of land. Land is also selling quickly with the average land on the market for 120 days. Agricultural land sells much quicker with an average sale taking just 60 days. Commercial land averaged 237 days in 2014.
Quick sales, financing interest opportunities and an abundance of land found in the heart of the country are just some of the reasons investors are pushing to add land into their portfolios.
The Right Land to Buy
Statistics also show that some land sells faster than other land. Whats hot right now? Land that is ready to be built upon. The less work needed to the land, the faster it will sell. Certain benefits include:
- Road Access: Local road access to the lot will increase value and the ability to sell the land.
- Utility Lines: Local utility line availability will further increase the lands value.
- Permits: Land that has building permits is also a hot commodity right now.
Investors have also found that agricultural land is a great opportunity. This is land that can be rented and bring an immediate income opportunity to the owner. Land that can be rented out to cattle farmers and used for grazing is just one example of the right land to buy. This allows the owner to have a potential for residual income while the property matures and land prices rise.
Land prices are on the rise, but now is the right time to buy. Purchasing properties in states with growing populations or in areas where a rise in commercial activity is seen will boost the profitability of your investment.
Of course, diversifying in land, stocks and bonds is the right choice for any smart investor.
LandCentury.com specializes in selling wholesale real estate at the lowest prices. We believe that everyone should have the right and the opportunity to get a great deal on investment property All you have to do to get the property you’ve always wanted is follow these simple steps:
Step 1: Find the Perfect Property
Use LandCentury.com’s powerful network of real estate listings to find the property of your dreams. We have everything from move-in ready investment properties and cheap houses to rural land, buildable lots, and fixer-uppers. No matter what type of real estate you’re looking for, you can find it at LandCentury.com
Step 2: Click the Buy Button
This will start the purchase process. As one of America’s top online property listing sites, we leverage our unique business model of submitting an online payment to hold the listing to make transactions straightforward and secure. Our purchase process is designed for simplicity and security. Once you click the buy button, you will:
Use our secure site to submit your processing fee. We make every effort to protect your privacy. That’s one of the reasons why we offer a 24-hour money back guarantee on your processing fee, so you can feel confident in your transaction.
The seller will contact you within the next 24 hours procced to the next step and get the necessary info to prepare the contract.
Buyer Transaction & Privacy Protection
LandCentury.com stands behind our buyers, and we want you to know that your hard earned money is safe when doing business through us. That’s why we have a number of features to help protect buyers, including:
Symantec Secure Site SSL certificate, providing a $1,500,000 warranty on every transaction
Secure encryption and data protection
24 hour money back guarantee on processing fees
2 separate legal offices across the country to help you with any problems you encounter, anytime
Seller ratings so you can see what other people have to say about their experience with your seller
Still Have Questions?
We’d love to answer them. Check out our Help Center page or call us at 1-888-LAND-WEB (526-3932)
Our highly specialized support team is ready to find a solution to your problem. A people first policy insures that a team member will always be available to speak with you personally.
Symantec SSL Certificate
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This website can secure your private information using a SSL Certificate. Information exchanged with any address beginning with https is encrypted using SSL before transmission. LandCentury.Com LLC has been verified as the owner or operator of the website located at www.LandCentury.com. Official records confirm LandCentury.Com LLC as a valid business.
Better Business Bureau
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BBB has determined that LandCentury.Com, LLC meets BBB accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. BBB Accredited Businesses pay a fee for accreditation review/monitoring and for support of BBB services to the public. BBB accreditation does not mean that the business’ products or services have been evaluated or endorsed by BBB, or that BBB has made a determination as to the business’ product quality or competency in performing services.
Web Site Anti-Malware Scan
GeoTrust is the world’s second largest digital certificate provider. More than 100,000 customers in over 150 countries trust GeoTrust to secure online transactions and conduct business over the Internet. Our range of digital certificate and trust products enable organizations of all sizes to maximize the security of their digital transactions cost-effectively.
The GeoTrust Web Site Anti-Malware Scan includes a daily malware scan to detect malware and alert you with detailed information to respond quickly to the attack. What happens if malware is detected on this web site? If malware is discovered, the GeoTrust Web Site Anti-Malware Seal no longer displays. When the scan confirms that all instances of malware are removed, the seal displays again.
If you feel that you have been a victim of real estate fraud, there are many resources available for you as the victim. Your first step is to contact the local District Attorney’s office and report the incident. Our office will stand by you and provide any relevant information to support your claim. Here are additional agencies that can assist you and provide more resources: