Cheapest Land in the USA

Purchasing a parcel of the cheapest land in the USA for long-term investment, can be one of the surest and safest methods of preserving capital and increasing assets. Investing in low-priced rural acreage located in the “middle of nowhere” is an overlooked and seldom understood real estate niche that can produce substantial profits.

Most real estate investment advisors ignore rural properties far from cities, as they’ve been taught that the most important factors regarding land investment are, “location, location, and location.” However, investors who deal in cheaply priced land would disagree: They would say the most important factors are, “price, price, and price.”

Early in 2007, some of the brightest real estate consultants in the nation advised CalPERS, the State of California’s multimillion-dollar public employees’ retirement fund, to invest in 15,000 acres located a few miles north of Los Angeles. The land was appraised for $2 billion, and the location—practically bordering America’s second largest city—couldn’t have been better. The real estate “experts” who put the deal together would have laughed at the idea of investing in the cheapest land in the USA for $300 to $400 per acre, preferring instead land near a huge population center priced at $140,000 per acre.

Soon thereafter the housing market collapsed in California, and within three years, CalPERS lost almost $1 billion, as the appraised value declined more than 50%, to around $60,000 per acre. So obviously, the old adage of, “location, location, and location” didn’t prove correct in this situation.

How did rural land located in the “boondocks,” priced under $500 per acre, hold up over the same period of time?  Even though the United States economy was going through a serious financial recession, land priced under $500 per acre remained fairly stable. Certainly, no case can be found showing that such properties dropped in value 50%. If anything, in some areas, prices increased 50%.

The great thing about cheap, rural land is that no population growth, no development or  rezoning is required to cause the land to increase in value. All that is needed is the passage of time and inevitable inflation! History has proven that if a person acquires a large tract of the cheapest land in the USA and holds the land for a long enough period of time, it is virtually impossible to lose money. In other words, the most important factors in long-term land investment are, “price, price, and price.”

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