Invest In Land Or Stuff A Mattress
As featured in Land Investor Magazine Vol. 1
Over the past seven years, investors have been notoriously careful with their cash flow, avoiding risk and staying cash heavy. This is no surprise. Due to the economic crisis in 2008, many investors and wealthy individuals became more risk averse with their portfolios, and began saving money instead of investing.
However, last year’s annual CapGemini/RBC survey of investors worldwide showed the number of households worth more than $1 million in investable wealth has risen 60 percent since 2008. This wealth is predicted to continue to increase by 22 percent by 2016.
As cash accumulates though, it is predicted that domestic taxes may be imposed on cash holdings themselves. This cash-hoarding psychology in itself reveals the anxiety many investors have to part with their money. It’s a deep concern, and one that is reinforced by the increase in taxation on income, capital gains, dividends, gifting to heirs, and possibly, even on cash itself.
However, the tax benefits of investing in real estate are appealing, particularly when it comes to investment-quality ranchland, farmland, and timberland investments. Land investments have historically had (and will continue to have) real, intrinsic value that can be built over time, returns boosted and diversified through thoughtful management, and is a particularly appealing asset allocation and capital preservation strategy.
So, should you invest in land or stuff a mattress? I’d say invest in land.
by Dick Ludington, Veteran Land Broker As featured in Land Investor Magazine Vol. 1 Veteran Land Broker Dick Ludington joined Fay Ranches in 2014, bringing over 37 years of experience in timberland, conservation, and recreational land transaction knowledge for public and private agencies to our team. His understanding in timberland investment has involved the buying and selling of millions […]
Written by Greg Fay, Founder of Fay Ranches As featured in Land Investor Magazine Vol. 1 So, you’re thinking about buying a ranch? There are a few steps to keep in mind as you embark on this adventure—but let me back up a bit. I’ve been brokering ranchland since 1986 and founded Fay Ranches in 1992. In the […]