Should I Invest in Land During an Economic Downturn or Recession?
You’re considering investing in land. You’ve heard that it’s a wise, long-term investment and offers you the opportunity to build wealth through appreciation. But is it smart during a financial downturn or recession? There are many different land investments and different reasons individuals choose to invest in land. But, no matter the type, they all have a fixed value.
And while we can’t precisely predict what will happen with the economy in the next few years or decades (even economists struggle with that!), we know that land is not volatile like other investments.
Follow along as we explore this topic!
Land is tangible.
Land is a tangible asset that will not be volatile or subject to inflation, currency fluctuations, or interest rate fluctuations. It’s not a security, a digital currency, or an intangible asset. Market downturns and short-term economic cycles cannot impact it.
It’s something that can be seen and touched. This makes it easier to understand as an investment and requires less trust in the people who manage it than investments like stocks or bonds would require.
As we saw this year, housing prices increased dramatically. In contrast, land prices have remained relatively stable. Land often has great appreciation value due to limited supply and growing demand for such properties due to population growth and retirement migration trends. People want to move out of metropolitan areas toward less expensive rural areas where land values are relatively affordable for retirement living purposes.
Land is a real asset that can be used to generate income and converted into cash, unlike stocks or bonds, which are paper investments with no intrinsic value unless sold at the right time to someone willing to pay for them at their current price.
Land is long-term by nature.
You don’t need to worry about market fluctuations because land doesn’t change overnight—it takes years before you’ll see any substantial reward from your investment in this type of property (unless you decide to sell land for a living). If there’s one thing we’ve learned over time, things tend to even out when left alone long enough.
Land isn’t volatile like other investments such as stocks or bonds.
Land is a more stable asset than stocks or bonds, which fluctuate frequently based on market conditions outside your control (oil price, interest rates). In other words: if you buy land today, then find yourself unemployed tomorrow due to economic conditions outside your control—and everyone else around them, too—you might still be able to make money off what little income stream remains after paying back taxes owed on profits earned during better times! It won’t provide enough income for survival, but at least there’d still be something left over after being taxed twice.
Land investing can provide additional income.
Land investing can be a great way to diversify your portfolio. If you have a solid understanding of markets and an eye for good deals, there’s no doubt that land investing is an excellent way to earn money in the short-term and long-term.
Land investing can also be an excellent way to build passive income for yourself during hard times. You don’t need to maintain it once it’s bought and paid for; instead, you can sit back and put all your efforts into other projects without worrying about whether or not your land is making money.
This is a chance to earn additional income while you sleep!
Conclusion
Land is a good investment because it is stable, tangible, low-risk, and has a long-term return. It can also provide additional income if you choose to turn a profit on it. Land investment has many benefits, especially during economic downturns when other investments may become volatile.
If you still have further questions, don’t hesitate to contact us at (636) 695-8800! We’re happy to help!
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