Why Invest in Land?

Global Insecurity

What you are about to read may have been considered hyperbolic 5 or 10 years ago but that is no longer the case. Not so long ago ‘preppers’ were widely regarded by as fringe groups of paranoid and reactionary people who did not trust the government. These days post COVID the situation has almost completely reversed and trust in governments and the main stream media is at an all time low. Talk of a global crisis is no longer a wild conspiracy theory as increasing numbers of financial experts and economists talk about when rather than if the global economy collapses. Governments are now even issuing warnings to stock up on basic foods. Governments generally don’t issue these types of warnings without good reason so it can be assumed that we are now entering into the beginning of what could be one of the worst recessions in recent history. Food and energy prices alone have gone through the roof in the last 6 years and that is only likely to get worse. In addition to the conflict between Russia and Ukraine we now have a crisis in the Middle East which is destabilizing the global economy further and sending fuel prices through the roof. Massive social unrest is looking increasingly likely in the very near future as governments try to impose digital ID and currency. In the event cash is likely to become redundant in the next 5 to 10 years at which point alternative means of security should be considered.

Financial Instability

History has repeatedly shown that at times of economic instability and social unrest bank runs become increasingly likely. When that happens banks will often limit the amount of money people can withdraw at which point there is no guarantee that you will be able to recover all of your savings. Most financial experts are predicting the imminent collapse of the dollar and hyper inflation. Most experts will agree that having a large percentage of your money in a bank during times of instability is a highly risky strategy. Most experienced investors are well aware of the importance of diversifying their financial portfolios. Common sense dictates that the best protection against financial losses is to spread the risk across multiple investment vehicles. Crypto currencies are certainly profitable at the moment but with power outages which are becoming more common they could be rendered unusable in emergency situations along with other asset classes which rely on electricity or the internet. The German capital Berlin has already suffered several power outages this year. In a worst case scenario land can still be bought and sold simply by exchanging written contracts either with a lawyer, via post, or in person.

Land as financial security

Land investing or 'land banking' as it is sometimes referred to is one of the safest ways to protect your money. Unlike FIAT currency governments cannot print more land making it a finite and much more stable commodity. It does not have any built in vulnerabilities as do the various asset classes that rely on infrastructure to function. Prices historically have risen in line with inflation making it it a much safer investment than asset classes that are less stable. Unlike houses land will not depreciate in value if it is not adequately maintained. Up until relatively recently land as a viable investment strategy has flown under the radar but recent technological advancements and AI have enabled increasing numbers of new investors enter the market. In the last 5 years this has lead to very rapid price increases in many parts of the USA and as a result the market has recently slowed. We believe this is a perfectly normal correction after a period of rapid growth which represents an excellent opportunity for savvy investors to take advantage of competitively priced land.

Finally

Agricultural land is likely to increase in value due to food shortages around the world and there is also a housing crisis which is forcing many people to buy up land for recreational vehicle living and tiny homes. Small parcels of land that permit recreational vehicles can still be bought for as little as $1500-$2000 per acre in certain parts of the USA which we can be easily resold online. Please let us know what you are looking for and we will be happy to assist you with your purchase.

Disclaimer-we are not financial advisors and this is just our opnion. For financial advice please consult a licensed professional.