The Strength of the Current Land Market
Many people are wondering what the safest investment options are during a recession. Today, we explain why saavy buyers are finding that land purchases are one of the best hedges against inflation, a potential recessions or financial downturn.
No matter how the economy performs, land retains value, as it’s a resource we can’t provide more of when we run out. There will always be a need for land, and recessions don’t last forever. Land investing is a smart idea as a property is a more stable source of investment and discerning buyers know this.
Unlike other liquid investments, land ownership also provides the opportunity of enjoyment. Landowners can recreate and enjoy their ranch while their money stays parked in a more stable and safe investment.
We are currently seeing ongoing strength in the ranch real estate market. Right now, cash buyers are actively looking to park their investment dollars into the land market.
Stocks vs. Land
Owning stocks during a recession can be a risky venture. Stocks are liquid assets, meaning they can be bought and sold instantly. This process is great when the market is booming, and you want to maximize your earnings.
But during a recession, the stock market can become volatile. Because you can trade stocks so quickly, the price value can fluctuate immediately. What was once a highly profitable stock can suddenly lose you a fortune in a matter of hours.
Smart investors doesn’t just rely on one source of income for their portfolio, they understand it’s best to have other investments that retain a more stable value on the market.
Land Investing
No matter what shape the economy is in, the land will always have value. As any landowner or real estate broker will tell you, the property value will fluctuate based on how the economy is going. But it will always have value, as it’s a resource that is always in demand.
The price of land can vary from year to year and even reduce in value during a recession. But when the recession is over, and everything goes back to normal, land price goes up.
During a recession, land offers a more stable investment. Even if the market drops, it won’t drop as much as a liquid asset like stocks, which change daily. When the economic downturn is over, these land investments tend to increase in value quickly, often times showing great gains over the initial purchase price.
Always Profitable
Another reason why land investing is a smart financial move is that there will always be a need for land. And the more you own, the more money you stand to make.
Land is a prime asset to invest in, as there is a limited supply, and it will always be in demand. You can’t make more land once we run out of room to build.
So it’s a limited source, which puts the ball in your court in terms of maximizing your profits. Recessions happen, but they always end.
And when it’s over, and land value goes back up, you can sell off all the property you’ve purchased, making a mighty profit.
In Closing
The ranch real estate market is still very strong. There is currently an abundance of buyers in the marketplace but a shortage in ranch real estate inventory. As a Seller, this creates a great position of strength. If you have considered selling your ranch property but current news reports of economic softening have you concerned, rest assure that the ranch real estate market is still extremely active.
Author: Travis Driscoll
7/18/2022
