If I could advise everyone who was investing, I would recommend Real Estate as part of the investment. It’s probably the only investment on which you will win. Just empty land is likely to be a winner. This doesn’t mean you go out and buy blindly, however. Just like the old business expression, the top winners will have one thing in common: “Location, Location, Location.”
Houses and Condos will appreciate in value. Land, undeveloped will also increase in price. You really need to watch for possible development in the near future. I bought a chunk of land (40 Acres), which was undeveloped, 10 years ago. We added the house (About 80K) and since then the value of the house and acreage has increased 100%. And now there is a land grab going on. Our 40 acres was $28,000. Today, 10 acres is going for $46,000. And our 40, with the house, is valued at a cool quarter-million.
Yes, there will be taxes on the land, developed or not. And with a housing shortage, as well as a limited amount of land available, the demand will go through the roof. While we are currently in a buyer’s market (People who are choosing to sell are finding it difficult to find buyers because fewer people are moving – the result being the price has to be lowered to sell – it is unlikely to last. And even the people who are selling are still making a fairly good profit on the houses.
A properly placed, undeveloped property in the city or suburbs is likely to result in a bidding war. Let greed play a role! Just a small down payment will give you enough leverage to become a multi-millionaire.
But don’t buy blindly. Don’t buy a house in a landslide area, or at the top of a cliff. Avoid fault lines if possible. Stay away from Nuclear Power plants. Even if the prices would increase (And they probably would), the risks of those areas are obvious. Again, location matters.
This is one investment where you don’t need to be in the right place at the right time. Just be in the right place. And with the current land crunch ahead, almost anywhere will be the right place.
This is one market that you won’t need to worry about in a crash. It’s your best bet for financial security. Grab it while you have a chance.