July 20, 2016

Why Invest in Land

taaz_makeoverHi, my name is Howard Zonder and I am the Founder and President of ABH Land Holdings LLC and LandHedge.com.  I have been an investor for over 25 years and for most of that time I have avoided raw land like the plague.  You heard me right.  I believed the oft told myth that land is a lousy investment.  Fortunately, I’m a little older now and a little wiser.

I can only imagine what my net worth would be today if I had purchased raw land outside of Phoenix when I lived there in the ’90s!

Most of us have been told from the day we started working that if we work hard and invest in mutual funds then someday we’ll be able to retire comfortably.  For most people this just isn’t true.

What the financial press and brokers fail to mention is that most fund managers don’t even beat the S&P 500!  According to a 2015 New York Times article, if mutual fund managers, “hadn’t bothered to pick stocks at all — if they had merely flipped coins — they would, as a group, probably have produced better numbers.”

If mutual fund managers, “hadn’t bothered to try to pick stocks at all — if they had merely flipped coins — they would, as a group, probably have produced better numbers.”  – 2015, New York Times

I’m not saying don’t invest in stocks and bonds.  But almost every honest financial planner will recommend that you diversify into many different asset classes.  Beyond stocks and bonds, these may include gold, silver real estate and raw land.

Land is a great Hedge in uncertain times because:

  • Land is a finite resource.  No more is being made.%22The major fortunes in the world have been made in land.%22-2
  • Land is resilient.  Buildings burn and can become dilapidated.  Land is still land.
  • Land has infinite possibilities.  Build your dream home, lay out a dirt bike course or dig for oil.  Anything is possible.
  • Land is a simple investment.  Unlike stocks, bonds or real estate, transacting land is, for the most part, unregulated.
  • Land increases in value.  In the long run land will appreciate as the population grows due to demand outstripping supply.
So unlike stocks and bonds where you pay commissions and fees regardless of performance, with land you own a physical asset that will always have value and can be enjoyed!

Learn more about land investing by downloading our free eBook, How to avoid the 3 biggest land buying mistakes and take advantage of our offer to save $200 off your first land purchase.  In this book, I will share with you the secret that changed the way I think about land and how you can apply the same principles to help you generate wealth from your land while you enjoy it recreationally for years to come.