Have you ever really thought about how real estate has, for the most part, been a main stay in any economy? As history has shown real estate has always been a great asset, something that is valuable, and increases in value in the long run even with its bubbles and bursts. One example is the purchase of Alaska where the United States bought the frozen wilderness for two cents per acre.
At the time it was called Seward’s Folly because it was thought to be a terrible deal for the United States. Many years later and with much hindsight, it was a stroke of brilliance. Then there was that little deal with the French that at the time was so outrageous where the U.S. gave $18.09 per square mile of land neighboring the young nation. Yet now look at the value of the purchase.
Land has always been a safe investment and even more so with our young nation than many others. Even if real estate and land is not as monetarily valuable right now as it once a few years ago, history’s facts have shown that it will indeed pick up again. Land is scarce, it is not increasing, and it is very precious.
What makes our Land so precious? I would suggest it is the freedom that goes with it. The freedom to improve the property, rent it, work on it, store things (including other assets), sell it for profit, hold on to it until the value goes up, pass it on down to your children, donate it to charity, or even use it as collateral. There are so many ways that land can be used that it does grant much freedom.
Someone once told me about land as an investment -you know they are not making any more of it! That is true but why can you buy land in, say, Mexico go for a token in several areas in that country and yet property here in the States is so expensive? (As well as a few areas in Mexico and areas throughout the globe). The last time I checked, no more land is being built or created in Mexico as well but it was still pretty cheap to own down there.
So freedom goes beyond just improving the property or selling it. The level of freedom through the ownership of land varies tremendously and does not grant someone the same amount of freedoms. In many other countries, for example, a family may have owned a piece of property for many years and the government would just take it away from them without reason or cause. And that is why property in America is such a value no matter what the cost. Land in the USA has more security due to the freedoms and rights attached to it that are set forth and enforced by the U.S. Government.
Due to the popping of the real estate bubble, the many land investors are upside down for the time being. Yet think about it, they most likely made some high profits and gains as they had been investing in land for quite some time otherwise they wouldn’t have been continuing to purchase land. The problem may be due to not watching history’s repeat of bubbles and bursts. There is an entry and an exit for everything. Many got in over their heads and kept purchasing and holding on in hopes that things would turn around. But history does repeat itself.
Now, for those of you who are watching history and have positioned yourselves and are purchasing land right now, you can most likely bet that history will show that the market corrections will make the need adjustments and property will once again in the near future be a great investment opportunity. If you can, now is the time to be catching in on some great real estate sales. Land and real estate will, as many centuries have told and shown, be the main staple of our economy.