LandThink took a survey inquiring about what most investors incorporate into their multi-asset portfolios. According to the results, 82% of the respondents indicated that land was included in their investment portfolios. 34% of respondents also said that over half of their portfolios comprise land investments. Gone are the days when investing in land is only for the wealthy. Consumers are finding land to be lucrative and affordable as an investment. They also realize that investing in land is much safer than dealing with rising inflation, a possible recession that economists keep predicting, or bank closures such as the Silicon Valley Bank failure.
Is land a good investment? Land markets have shown exceptional stability in the past several years. For example, investing in land in the Southeast has proven to be a promising way to profit, as the numbers show that in those states, buyers have flocked there to purchase real estate. So let me just say now is a great time to invest in land if you’ve considered it. There’s a demand for land, and it doesn’t look to be slowing any time soon. Land is one of the most stable, tax-friendly investments a person can make! Here are some options to incorporate land investments into your portfolios.
REITs or Real Estate Investment Trusts are companies that own and oversee real estate investments that produce income. There are different types in which they can be found, such as timber and farmland. REITs work by grouping together the capital of several investors. The individual investors then earn dividends without having to buy, manage, or finance any properties themselves. These are profitable and beneficial investments because they gain appreciation and payout regularly. Farmland and timber REITs are among the best-performing real estate sectors, despite concerns about inflation constantly rising and soaring commodities prices. Timber REITs have had record profitability, with high lumber prices feeding builds from a housing demand. Farmland REITs hold the land and allow investors to receive dividends from leasing the land to farms. They can be more volatile but often offer higher potential returns. REITs are a great option if you are interested in supporting and investing in the agricultural industry but don’t want to figure out how to maintain and work the farm’s operations.
Real estate crowdfunding is a relatively new concept to me. This option is a great one for the average investor. An example of a crowdfunding platform is Harvest Returns. After perusing this site, I realized this is a pretty neat platform! They give extensive information about the reasons you should invest in agriculture. Reasons include inflation-proofing your portfolio, feeding a growing population, having a positive social and economic impact, and it’s a great way to improve agriculture production. Crowdfunding platforms can offer high returns but also carry significant risks.
Some investors like being in complete control over their investments. By purchasing raw land, the investor decides how best to develop it. Land can earn cash flow by transforming into commercial and residential rental units. Recreational land can earn cash flow by turning into commercial and residential rental units.
If you’re looking for land to purchase as an investment, we have ideal options for you to consider. We sell in Montana, Wyoming, Colorado, and North Dakota and have agents knowledgeable in farm and ranch land, recreational land, hunting land, or commercial investing.