Land Investment is an Ideal hedge Increased Federal Rising Interest Rates and Coming Inflation

The global central banks have been printing money as a means to stop the most recent financial crisis. The biggest three money printing central banks have been the Federal Reserve, Japan and the European Central Bank. Gold has diminished in value instead of increasing the last five years during the QE (Quantitative Easing) era. The US Federal Reserve has ended qualitative easing and will increase rates soon likely in months according to experts. Higher interest and all this money printing to avoid deflation will likely soon cause inflation. The US debt is so large that other countries may also move away from the dollar as the sole reserve currency. There are recent news reports that outline this. These factors will all lead to inflation, and likely very high inflation. Gold is usually a very popular investment to combat inflation as it appreciates in value against a currency during inflationary times. Real estate is also a great investment at any time, and it is even better during times of rising inflation. Real Estate housing prices will likely drop with higher interest rates as the cost to buy a home will be more. The limited availability of land and rising population growth will increase housing demand and hence real estate in general has the potential to beat inflation in the long term. A reason why land is a good inflation investment hedge is because it will not lose value to zero like a stock can. Land doesn’t go bankrupt If you buy land in cash then the value may go lower, but overall will have value if it was a decent purchase price in an area that will see growth with future development. It doesn’t mean all land has value. If a person overpaid for land then the value may take decades to generations to produce a return on investment. Precious metals like Gold and Silver can increase dramatically in inflationary periods so your investment can profit much more than land. But buy land at a good price and the investment can hold its value in inflation. You can also sell it as other may want it as their inflation hold in such an environment.

Land as a Hedge Against Economic Collapse

The stock market keeps moving up to all-time highs the past six years, and gold continues to drop, yet many people don’t believe this economies “growth” is real. There are a number of books like Crash Proof by Peter Schiff, The Death of Money by James Rickards, The Coming Collapse by Harry Dent, and the research firm Stansberry & Associates who reference that the US deficit, demographics and a potential collapse of the dollar will bring hard times in the America. There is also loan obligations in mortgage insurance, and underfunded social security and Medicare benefits compound the US deficit into the tens of trillions. The dollar is currently the world’s reserve currency, but in the future that may not be the case due to debt obligations and a dollar currency collapse will change the way of life in America. These authors suggest a number of protective remedies to a collapse, and a main remedy maybe physical gold and silver in the form of coins or bars. These are a hedge against inflation, but they may also may be the money of the future. As currencies may go back to the gold standard. Central Banks may be forced to back fiat currencies with gold in their vaults. Additionally, land is also a means to preserve your wealth or investment in the event of a stock market crash and loss of the dollar as a reserve currency. Farm land can be ideal as it can be used simply to feed your family, and to grow enough to sell in a collapsed economy. Any commodity that can be sold will help you get by when the US has been turned upside down. Land is better than real estate with improvements in an economic collapse scenario as there is no maintenance, taxes are lower and an angry mob can burn down your rental home or building. Also, if there is an economic collapse then residents and commercial tenants can’t pay their lease or rent so a building with a mortgage and taxes can cause insolvency. Land also doesn’t lose a lot of value over time. It may fluctuate with the real estate market, but as long as you bought at a reasonable price then your land will hold its value. Most of the time land is bought with cash so it is a safe haven in hyperinflation When the collapse runs its course then you can sell your land later at a higher price when development comes you way. We have property at vacantlanddeals.com that may just fit a depression or longer term recession scenario.