When the word “Investor” comes to mind, I’m sure you’re thinking of someone that invests in the stock market in large companies such as Apple, Microsoft, Walmart, Berkshire- Hathaway just to name a few. Modern day investors may have some stocks of these big brand companies, but they are also investing in land.
“Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.” -- Andrew Carnegie, billionaire industrialist
In our opinion, the land is the best place to invest your money. It is essentially a secure and stable investment that can increase your return on investment (ROI) within just a few years.
There is a significant difference between investing in land and investing in stocks. When you invest in land, you’re essentially purchasing a piece of tangible property – a piece of the earth. You invest in a property that you believe is in a path of development and you just sit tight and wait. When you purchase stocks, you’re buying a small piece of a company, if a company has 1,000,000 outstanding shares and you own 10,000, then you essentially own 1% of that company. Stocks may seem simple, but trust me, there’re not.
Once you invest in land, it’s completely yours, there is no one telling you what to do with it; where as in stock investment, the elected board of directors decides how much of the company’s profit gets reinvested in expansion and how much gets disbursed into cash dividends to the stockholders. So, in layman’s terms, if a company goes belly up because of poor management, your stocks go out the window.
Stocks also experience extreme short-term fluctuations; your $50 stock can decrease to $10 in a matter of hours. You’re basically leaving your money in the hands of other people and any management discrepancies or poor judgment can cost you a lot of money.
When investing in land, once you make your initial purchase, wait until a company announces that they will be moving into your neighborhood and that’s your chance to sell. Your once “out of the way” property has now become “in the way”.
At The Land Store, we are firm believers in land investment – check out our great properties to make your initial investment!