Investing in Land – A Way to Grow Your Net Worth
When you hear stories like those of Bernie Madoff or Enron, it really makes you wonder who you can trust. Time after time, Wall Street criminals take money from the unsuspecting and make them go broke while lining their own pockets. These days, it’s almost impossible to find a solid CD or money market account that will give you any discernible amount of interest. Stagnation in the financial market has caused people to seek refuge in tangible assets in commodities like gold, oil and other precious metals. Some of the markets can be extremely volatile due to issues surrounding supply and scarcity. The question nowadays is where can I invest my money that is safe and offers a chance of a large return? The answer to the question is something that many may not be familiar with. Investing in land is one of the most historically safe and best ways to realize gains on your money. With the economic climate the way it is, bargains abound in the market for land purchasing.
Land foreclosures are excellent opportunities to invest money into real property at very low cost. Even without purchasing foreclosed lots, land investing can offer a very inexpensive means of realizing high percentage returns on your money. Considering that land rarely, if ever, depreciates in value, investing in land can offer a safe investment in a time of turmoil. Foreclosed tracts of land are often sold for a small fraction of the actual value, and you can still easily resell this land to investors, developers, and builders. If you decide that you want to employ a strategy that concentrates on long term holdings rather than a quick turnaround, then you can focus your land investments on property development potential. Many fortunes have been made by purchasing dirt cheap lands then selling the acreage for millions. Back in the 1960′s you can have bought swap land in Orlando, Florida for only mere hundreds of dollars. A decade later when a theme park you may have heard of opened up on that same swap land, the land holders became instant millionaires.
Believe it or not, these opportunities exist more than you would never imagine. Many times private land developers will purchase large tracts of land for their own portfolio. When economic downturns occur, these developers will often liquidate their holdings in order to satisfy outstanding debts. Other opportunities arise when land investors cannot make payments on other holdings so a bank will foreclose on the land that sits in their name. There are auctions held weekly that sell off these parcels of lands to the highest bidder. Sometimes the auctions will have properties go unsold because many are not aware of the public land auctions. As more people become aware of the golden opportunity land investing offers, the choice tracts of land may become scarcer. If you are interested in earning a guaranteed modest return on your money, with a potentially large return, then investing in land is something you should greatly consider.
By: Clint Ferdinand
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