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| Jon
You bring up a good point. One of the positives of owning land is it gives you a lot of options. You could sell off part or all in the event you got into financial trouble. You could lease some or all out. You could sell trees if marketable timber. As a last resort sell topsoil to landscapers etc. Diversify and grow trees/bushes for the landscaping industry. Owning land opens up a list of possibilities.
I feel like being able to control your own destiny financially is often a better move. My generation has had 3 major setbacks financially in the last 20 years. We lost a bunch after 9/11. Market crashed again in 2008 housing crisis. Then again during covid. It has taken years after each of these events to recover from those losses. If you continued to invest new money during the down years it paid well. However many folks my age were financially strapped and couldn’t take advantage of those opportunities. During the last 20 years land would have been a better investment for folks my age then the stock market as a whole. Not saying you couldn’t have hit it big by buying bitcoin when it was $40 but you get the point. Overall the market in my investment career did not and has not outperformed the land market “here”.
The other part some folks do that take into account is the recreational opportunities that owning land provides. Having a place to take the kids camping fishing hunting etc has a value. The value is determined differently from person to person. I personally place a lot of value on time spent with family. It may not show up on a balance sheet at the bank, but it does have tremendous value. | |
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Roth IRA to buy farmland
