Buying property is like buying stock or a racehorse. You don’t want to jump on a horse when it’s halfway through the race, and you don’t want to jump on a horse after the race is over. If at all possible, you want to buy a horse after he’s proven he can win, but before he runs his next race. The same is true of investment property. “Today, our market seems to have flattened out,” Kerry Johnson of Mossy Oak Properties BioVenture Investments in Jackson, Missouri, reports. “We’re not in a decline, but we’re not running at the same speed, and property isn’t appreciating as rapidly as it did several years ago. However, all of this is good news for the long-term investor.”
Because there are currently some really-good land bargains out there, probably there will be another run for more-rural property soon. Until the 2008 presidential election, businesses are pretty-much on hold until they get some type of direction as to which way the country will go. Feeling the sentiment of the majority of the people in this country can help an investor pick the right time and make the precise offer on a piece of property. If people believe that the country is headed for recession, hard times may be in our future. Folks will feel like they need to horde cash. The investor who has some money to buy property often can get a very-good deal on land.
“As a whole, the real-estate market is a little flat, especially with new-home construction being on the downswing,” Johnson mentions. “That’s the bad news. The good news is that forestland and recreational properties are still stronger than ever. Agricultural, forest and recreational properties still are strong because the interest rates aren’t bad. They aren’t as good as they’ve been in the past, but they also aren’t as bad as they’ve been in the past. Whenever there’s instability in the national economy, the forestland and the agricultural market seems to grow stronger. We’re seeing numbers of people moving money from CDs, money markets and stock and buying land.”
Putting your cash in a jar and burying it in the backyard is a relatively safe way to preserve your capital. However, regardless of the amount of fertilizer and water you put under, on top of and all around that jar full of money, it won’t grow. If you put your money in land, you still have it in the ground, but it can grow timber and crop, and increase in value over time. We’re seeing larger numbers of people moving their capital to hard assets as opposed to paper assets. Who’s to say that you can’t have fun with your investment? When you invest in forest, agricultural and/or recreational properties, you can grow trees, vegetables and timber and hunt and fish on it. While the value of the property grows, you and your family can hunt, fish, farm and watch birds or just sit on your property and watch the grass grow.
Friday
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