I know you haven’t come this far in life without hearing something about how land is a silly investment because it just sits there, it doesn’t generate anything.
I’m sure you’ve also heard how all the land is owned by someone, and that they aren’t making any more of it.
Don’t these two statements contradict one another?
If something is scarce, doesn’t it automatically become valuable?
With a little creativity you can hold land AND collect income on it!
Because all land is owned by someone, people need permission to use space for camping, hunting, off-roading, farming, ranching, etc.
Imagine if you owned 20 acres of open space.
You pay under $45/year in property taxes and that is your only expense in owning this land.
Now you rent that land to folks looking for a quiet place to camp.
Every weekend you rent 10 acres each for $30/night – that’s $180 for a 3-night stay!
Bonus – you and your family get to use the property in the same capacity for free whenever you want to get away!
You’ve just created ownership, passive income, and free vacations for yourself and your family.
Investing in land is a smart decision.
~ No ups and downs of the stock market.
~ No high costs of ownership.
~ No tenants, no repairs, no maintenance.
~ Land is always there for you, never depreciating.
I would argue land is the safest investment vehicle out there (and I’ve put my money where my mouth is!)
Growth is all around us.
Inevitably you will find yourself in the path of growth someday.
Even if you bought a certain parcel to be away from everything, eventually you will find that sprawl happens.
Picture that you bought that 20 acre parcel in the middle of nowhere.
The nearest store is an hour away.
You start building your dream home.
You start raising some animals, maybe some children.
You love living here, but after some time you start to concede that it would be nice to have a gas station a little bit closer.
All of a sudden you start seeing lots sell, houses are built, and people start moving in.
Within a year or two shopping plazas are erected and you only have to drive 10 minutes to get to anything you need.
All of a sudden you realize, you’re living in the suburbs – exactly what you came out here to avoid.
You are on 20 acres, you find that once you are home you can’t even tell that you have neighbors. You benefit from the growth by not having to drive so far, you start saving money on transportation costs. Your kids are making friends that live a bike ride away.
And most notably, that 20 acre parcel you bought 20 years ago has quadrupled in value (just the land alone – never mind that beautiful house you built!)
And now you have a legacy to leave behind for your family.