Best Investment
in the Land
Land Ownership Offers Unmatched
Return on Investment in Today’s
Economy
November 11, 2008 (KANSAS CITY,
MO) - For the millions of
Americans who have become
unsettled by recent Wall Street
losses, identifying solid
alternatives for current and
future investment has become a
popular topic of conversation.
The answer is literally right
under their feet. By planting
money in land, investors have
the opportunity to take
advantage of the high
yield returns offered by the
steady
growth of land values in
recent years.
A
recent index from United Country
Real Estate, the nation’s expert
in recreational and rural real
estate, reveals that since 2006,
general non-urban land values
have increased by more than 27
percent. Based on United
Country’s closed land sales
data, the national price per
acre average increased from
$1,691 in 2006 to $2,142 in
2008. When compared to the
nearly 35 percent decrease on
Wall Street since 2006, land
investment has become an even
more attractive
option when it comes to
diversifying the allocation
of
investment funds.
The
following scenario illustrates
this principle. Imagine that in
2006, two people each had
$100,000. Investor No. 1 placed
his money in the stock market
and Investor No. 2 used his
funds
to purchase recreational land.
Today, on average, Investor No.
1 would have seen his investment
decrease to $65,000, while
Investor No. 2 would have seen
his investment value grow to
$127,000.
“What makes land an even more
attractive investment is that
unlike Wall Street investments,
land
can actually be used and
enjoyed for recreational
purposes such as hunting,
fishing, hiking, camping,
vacationing or as a source of
additional income by purchasing
cropland or hunting leases that
allows
them to receive cash
rents,” said Dan Duffy, chief
executive officer of United
Country Real Estate.
According to Michael Landreth,
president of the REALTORS®
Land Institute (RLI), “Land is
one
thing
we won’t be making more
of. That’s precisely the reason
land has historically been a
great long-term investment. Now,
with recent land value increases
in many parts of the country,
land has become a
viable
short-term investment as well.
The two most active categories
of land in the market today
seem
to be farm land and recreational
properties.”
And
it appears that investors are
looking at and purchasing more
rural properties. Buyer traffic
on the United Country web site,
www.UnitedCountry.com,
indicates that purchase interest
has increased in recent months.
Data through the third quarter
of 2008 reveals that the site’s
visitor sessions per month were
up 13 percent versus third
quarter 2007. Additionally, the
site’s average session length
rose by
11 percent, to an
average of 23 minutes, during
the same period. According to
www.Compete.com, an
independent web traffic
analytics company,
UnitedCountry.com leads the real
estate industry in session
length, edging out their closest
competition in the category by a
margin of more than 30 percent.
“These statistics indicate more
than just web traffic,” Duffy
said. “Our web site visitors are
largely comprised of very
knowledgeable and experienced
buyers, so seeing a jump in our
web statistics is a great
indicator that buyers are
showing increasing interest in
the types of properties listed
by our offices and that they
recognize this is an excellent
time to consider investing in
real estate. This growth in web
traffic is also showing up in
our sales, with United Country’s
October sales surpassing the
previous two months as well as
October 2007 sales figures.”
About United Country
United Country Real Estate is
the only national real estate
franchise system specializing in
properties in and around the
small cities and towns of
America. Based in Kansas City,
Mo., the company has been an
innovator in real estate
marketing since 1925. United
Country supports more than 675
offices nationwide with a
unique, comprehensive marketing
program that includes one of the
leading web sites in the real
estate market (www.unitedcountry.com),
proprietary real estate
catalogs, an extensive buyer
database and national
advertising of properties to
over 90 million homes a
week. United Country has been
named as a Top 25 Franchise by
the Wall Street Journal and
among Entrepreneur Magazine’s
Franchise 500®.
In January 2007, the company
introduced United Country
Auction Services, becoming the
nation’s
largest integrated
network of traditional real
estate agents and real estate
auctioneers.
NATIONAL HEADQUARTERS
2820 NW Barry Road, Kansas City,
MO 64154
816-420-6200
www.unitedcountry.com |