It’s January 5th and we can officially say here at Reserve Land that the landscape is changing (no pun intended). Generally we find December and January to be very slow months for business, but this year seems to be different. We are currently working on closing several contracts before the 15th of the month and it could very well be a sign that the land market is bottoming out.
Now many believe we still have some time to go before the housing market has been completely flushed out of toxic assets, but the truth is land is becoming a valued commodity for several reasons. A home is viewed as liability in many ways and raw land is an asset that can only be improved upon. If you were to ask anyone here in the office what they felt about the overall sentiment, many here believe the stock market has become a huge benefit to land owners. The volatility in the stock market makes it easier for an investor, buyer or seller of land to make a decision. You have two choices, own a paper asset or a real asset. For many that decision is becoming much easier.
Imagine owning an asset that only has a small payment due each year. Property taxes for raw land are generally very inexpensive. And the greatest news of all is that you can get extremely creative when you own a property that’s 40 acres. I personally own several properties and enjoy the creativeness that it bring to mind. Whether it’s building a dream house, a small ranch house for you and the family or creating an alternative energy project, all these things have value that a paper stock doesn’t. In 2012 we challenge you to buy an asset that has real value!