The Top 10 Reasons to Own Land in 2023
Every few months I review the state of the economy to get the macroeconomic pulse. This can be challenging because the financial system has a lot of moving parts. I try to challenge my own thinking often as an investor. Is my bias toward owning land still justified today? A better question might be, “What is most likely to happen in 2023?”
Here are my humble predictions for why owning land in 2023 is a good idea. *Not legal advice.
– Unless you’ve been lying under a rock, you’ve heard about the US dollar inflation. Good ol’ greenbacks are losing some purchasing power. This means that the relative value of a tangible good, like land, is trending up. If you buy at the right price, land can be an excellent store of value.I’m not a Surfer, but I’d rather be riding the wave inside of pushing against it. The price direction of land generally goes one direction– up. This is not always the case, especially if you’re not educated on what is a good buying price. Make sure to do your research on the local market.
Land is a physical good
You can use land. Host a party. Build a house. Start your family tradition of camping for a weekend.
Physical things can be leveraged in many ways. I even made a video on the many ways to make money from your land.
For the brainy readers here: commodities do better during recessions. If you look historically at the data, when stocks are doing poorly, commodities are doing well. It’s an inverse relationship. Look at used car prices in the past year — tangible goods are more scarce and will likely continue into 2023. But why? Physical goods take time. Someone has to source materials, assemble the item, then ship it around the world to your front door. It may take a while for supply-demand to shift.
Maintenance is minimal…
….or even nonexistent when you own land. If you own a home, you’ll know things break constantly. With vacant land, there’s none of that. No renters, rehabs, or repairs. Just don’t forget to pay the land property taxes, which are comically low compared to house property taxes.
Most people can afford Land
Land is generally much cheaper than a house– there’s a low point of entry. Most Land companies offer Owner Financing, which is a fancy way of saying “payment plan”. So for $199-299 / month, you might be able to get started on that ideal piece of land that you’ve been watching.
. When cities expand, people need a place to build. Buying land in the path of growth is a smart strategy. In the United States each year, over 1.2 Million homes are built– according to Statista.com it was 1,379,600 in 2020). They all need land to build on, especially outside major cities like Los Angeles or Las Vegas. Be careful not to buy too far outside a city. California City is a good example of planning too far in advance.
Did you eat today? It’s likely that most of your meal was grown or raised on Agricultural Land. Everyone uses Agricultural land, whether they’re aware or not. According to APNews, Bill Gates values Agricultural Land, enough to amass a lot of it:
“The billionaire [Bill Gates] tech mogul and philanthropist has quietly amassed nearly 270,000 acres of farmland across the country, but that’s still a relatively small slice of the nation’s nearly 900 million total farm acres.”
Land can make you Money
I made a video on the many ways to make money from your land.*Note: This will take time, persistence, and hard work. I’m proof that making money from land is possible. And if I can do it, you can do it too!
You can potentially use your land as collateral for other asset purchases. If you need a bank loan for a home, you might be able to use your land as collateral for other assets. Talk to your local banker.
Build Family Wealth by Owning Land in a Trust
Many wealth-minded people will pass land on to family using a Family Trust. This usually avoids the Probate process (when someone passes away), which involves proving to the government that you rightfully own a property. Talk to a lawyer or qualified professional. Your future self will thank you. This is not legal advice.
If the economy hits the metaphorical fan, you might sleep better knowing you’ll have a place to live no matter what happens. It’s a bit like having worst-case-scenario insurance if something really bad were to happen.