Unless you’ve had your head in the sand for the past year, you surely know that the country is in a bit of a financial bind. The unemployment rate is the highest that it’s been an recent times. Because so many people have lost their jobs and have been unemployed for so long, many have had the bank foreclose on their homes, cars, boats, and RV’s. The stock market has taken a huge hit and billions of dollars have been lost by investors. A lot of people’s retirement plans have lost money and many people who are close to retirement have to postpone their retirement and work longer because their “nest egg” has shrunk.
If you are one of the fortunate people and you haven’t completely wiped out by these tough times, there’s an investment strategy that you might consider. Many of the countries most wealthy individuals acquired their fortunes by investing in real estate. Maybe it’s time that you took a close look at this market. I’m not suggesting that you rush out and buy a bunch of rental properties. That would be one strategy but what I’m talking about is buying undeveloped land. There is a lot of really cheap land for sale right now. People who own undeveloped land and are in financial trouble are liquidating many of their assets to avoid loosing their homes and cars. Undeveloped land is one of the assets that people can live without and consequently, many people are selling it off at less than fair market value.
The good part of it is that the real estate market is in a real slump and land values have dropped considerably. Many of the individuals who are selling off their land are in a financial pickle and they are willing to sell it very cheap. With a little leg work, you can find some really cheap land for sale right now. History has proven that land values will go up and down during tough times but even with these fluctuations in value, they steadily appreciate as time goes by.
One strategy would be to buy up a bunch of cheap land for sale at rock bottom prices and hold it as long term investments. Let 20 years go buy and you might quadruple your initial investment when you sell out. Another approach would be to buy up a bunch of cheap parcels of land at less than their current market values and then put them right back on the market at full market value. If they sell, you’ve made a quick buck. If they don’t sell, you’re not out anything since they will only appreciate the longer that you hold onto them.
I hope you can see the value of buying cheap land. There are fortunes to be made by savvy investors right now. Some people will recognize this and make a bundle. Most however, won’t act and years down the road they will realize what an amazing opportunity they missed out on. Which category will you fall into?
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