Land in Lieu of Stocks

Land as an investment can be an accessible purchase for almost every potential investor. 

The 30+% loss in value of the Dow in 2008 has the astute actively seeking long-term stability in other investment vehicles. It could be recreational timberland, path of progress development acreage, a residential lot for a future retirement home, or farm land for crops. Being able to touch it, walk it, and relax on it makes land a special physical investment.

Land is of finite quantity—no more is being made. Asheville real estate and surrounding areas in Western North Carolina continues to draw retirees, ensuring continued demand for land.

farm-real-estate

Market pressures on developers right now make it a perfect time to take advantage of their surplus lot inventory. When this inventory is whittled down, boomers will continue to retire in Western NC and the values of today’s bargains are likely to rise.  The key is buying right and verifying usability.

Path of progress, future development acreage carries more risk and is more difficult to finance. Seller financing is a welcome option in transactions where the owner has no or low debt. Many of today’s paths of progress bargains are either bank owned foreclosures or over leveraged short sales. These generally require cash. 

Funding sources for such can be self directed IRA’s, retirement trusts, REIT’s, home equity lines, and 1031 exchanges out of other real property investments. Key here is buying right and confirming the highest and best development plan is both feasible and permitable in the better times to come. Staying power is required.

Farm and timberland investments can be financed through Mountain Farm Credit. A farm plan with verifiable farm income data is needed. Locally, we are blessed with successful nursery stock, greenhouse, sod, and fruit operations. Fish, vegetables, and hay are also money makers.

Farming requires skill, knowledge, hard work and luck. Years ago, vegetable growers were the highest paying tenants of local bottom land. Today, sod farmers pay top dollar for the bottom land, which is well suited to their needs. That rent helps set the land value.

Again, buying right and doing all the analysis up front is necessary.

Land brokers at Beverly-Hanks have specialized education and professional synergies that we couple with good detective work and quality research. This helps us provide our clients with the competitive edge when investing in Asheville land, Hendersonville land, Weaverville land, and other areas in Western North Carolina that qualify.

 

Submitted by:
Rick Merrill, Broker Associate
Beverly-Hanks, Hendersonville