Is Cheap Land a Good Investment?
The answer to that question—“Is cheap land a good investment?”—would depend on your definition of a “good investment.” If your definition is an investment that will double or triple in two or three years, then the answer would be “No.” On the other hand, if your definition is an investment that predictably and safely always increases in future years, then the answer would be a resounding “Yes.”
Let’s summarize four different assets that many people invest in.
- Stocks and bonds can go up, can go down, and sometimes can go bankrupt, wiping out all values.
- Income real estate (apartment buildings, offices, industrial parks, etc.) can be subject to vacancy factors and ongoing maintenance expenses.
- Bank CDs are insured by the federal government, and therefore are safe as to the face value of the asset—however, due to inflation, cash always depreciates in “buying power” through the years.
- Land can go up, it can go down, but it remains forever, and historically, it’s always worth more money in future years.
History has proven time and time again that cheap land is not only a good investment, but if it is purchased cheaply enough and held long enough—it can become a fantastic investment!
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