“Last month, the LANDTHINK Pulse posed the following question to our audience: When the stock market becomes volatile, how likely are you to invest in land?
Our informal online survey revealed that 40.6% of respondents are VERY LIKELY to invest in land amid stock market uncertainty. The stock market has responded to the COVID-19 pandemic with worrying volatility. As fears around the coronavirus spread across the global economy, investors are looking for the calm in the coronavirus storm and are moving out of stocks and into safe haven assets like land.
Many people’s hard-earned investment portfolios have already taken a beating. Stock markets around the world suffered historic losses in the first three months of the year; the S&P 500 lost 20% during the quarter, its worst since 2008. The Dow Jones Industrial Average saw its biggest quarterly drop since 1987, plunging 23%. The global turmoil has investors seeking out safer, non-traditional ways to diversify their portfolio.
For those who prefer a more stable, consistently rewarding avenue of investment, land real estate could be the answer. There are good reasons you should consider it in your portfolio:
Limited Supply and Increasing Demand
There is a finite amount of available land making it a very attractive commodity in a world where the population continues to increase exponentially. If you choose to invest in a growing area, land will become even more scarce and therefore, more valuable. Remember that smart investors invest for the long haul. Land is not liquid. Investing in land can tie up your liquid assets until you’re able to sell the property, but if you’re in the market for a solid, long-term investment, it’s worth the consideration.”