Why Buying Land Could Be the Smartest Move You'll Ever Make

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Why Buying Land Could Be the Smartest Move You'll Ever Make
By

Bart Waldon

Listen up folks - I've got 10 solid gold reasons why you need to stop dragging your feet and invest in land pronto. Yes, I know acres of dirt don't seem as enticing as snatching up trendy NFTs or the latest meme stock. But trust me, getting your hands on some good old fashioned real estate is a WAY better investment than chasing virtual fortune.

Don't just take my word for it - keep reading and I'll convince you that slapping down cold hard cash for land is one the smartest decisions you'll ever make. I've dug up plenty of research revealing how land appreciates more than almost any other asset. Plus, it creates lifetime income streams and leaves a legacy future generations will thank you for.

So tune out the talk of cryptocurrency and digital art. The next real estate investment jackpot is lush green pastures and rich brown soil as far as the eye can see. I promise by the time you finish this blog, you'll be itching to stake your claim in terra firma riches. Let's get started!

Reason 1: Appreciation That Crushes Inflation

Here's a question - what increased in value more over the past 60 years, land or gold? Surprise! It's land by a longshot. According to the National Association of Realtors, the average per acre value of U.S. farmland has grown 7.8% annually since 1960. For you math nerds, that's more than double the rate of inflation.

Compare that to gold’s 3.4% average annual appreciation. Land prices are crushing even the world's favorite inflation hedge! Oh, and don't forget population growth. The UN predicts another 2 billion people on Earth by 2050. That's a lot of mouths to feed on the same fixed supply of raw land anyway. With demand skyrocketing and inventory shrinking by the minute, land values have no choice but to keep soaring.

Don't take my word for it - the numbers speak for themselves. Get this - the average per acre value of farm real estate jumped over 15% in the past year alone, according to the USDA. In just 12 short months! If that's not reason enough to scoop up some cheap land now, I don't know what is. Don't wait around while inflation eats away at your cash – invest it in an asset that appreciates exponentially.

Reason 2: Build Instant Equity the Day You Buy

What's better than finally paying off a 30-year mortgage and owning your home free and clear? The satisfying feeling of equity in your hands, right? Almost as good as standing on your front lawn and shouting “I’m debt free, baby!” at the top of your lungs.

But you know what's even better? Buying land with cold hard cash and skipping the mortgage altogether. No monthly payments dragging you down for decades – just instant equity and ownership from day one. The value starts compounding the moment you make the purchase. Your equity soars right along with the land value and inflation.

Talk about a smart money move! While everyone else is writing checks to the bank every month, you'll watch your net worth skyrocket. And leverage it anytime – borrow against your equity for other investments or to finance big purchases. Try doing that when the bank owns your house!

Reason 3: 100% Freedom to Use It However You Want

Here's one of the best perks of land ownership - you can truly do whatever you want with it. Farming, building a vacation home orprimary residence, raising livestock, leasing it to energy companies...the possibilities are limitless.

You don't just own the land – you own the right to use and profit from the land however you see fit. And whatever you build on it immediately becomes part of the property value too. Erect a beautiful house, lush vineyard or lavish ranch – it all adds tangible equity that's yours to keep and leverage.

So go ahead – build that six-car garage and expansive deck you've dreamed about. Install stables, pools, tennis courts, whatever creates your paradise. You have the ultimate freedom to transform raw land into anything your heart desires. Now that's what I call living your best land baron life!

Reason 4: Everyone Wants a Piece of the Pie

If location is on your side, purchasing land means owning an extremely valuable asset. Developers want land for residential housing, shopping malls and commercial buildings. Farmers need acreage for crops and livestock. Energy companies seek drilling and mining rights.

Regardless of how you use it, one thing’s for sure – scores of potential buyers want what you have. And you can easily profit in two ways:

1. Lease it – grant temporary rights for others to use your land. Farmland leases, drilling rights and rental housing or selling land are lucrative options.

2. Sell it – when the time and price are right, transfer ownership permanently for a good investment and a massive payday.

Either way, you profit handsomely. Having an asset so many other people desire is powerful – like owning a priceless painting that collectors drool over. The demand drives up value beyond imagination. And the best part? Sit back while rental income pours in, then cash out someday for exponentially more than you paid.

Reason 5: Real Estate Diversification – the Ultimate Shield

Let’s chat for a minute about smart portfolio management. Savvy investors know concentrating money in just one asset or market segment is extremely risky. That's why diversifying into different classes – like stocks, bonds and real estate - is so crucial.

Allocating funds across multiple areas means you’re not overexposed in any one. So if stocks decline, for example, growth in another offsets the loss. It balances risk and protects your money. But here's the key - REAL assets like land offer protection that paper assets can't.

Land’s physical nature makes it totally separate from Wall Street ups and downs or liquidity crises. It provides a literal foundation to your portfolio that won't crumble in a volatile market. No matter what hits the fan with paper assets, your acres remain valuable and solid.

Talk about stable – you can't get more grounded than dirt itself! So do yourself a favor – ditch the notion that only stocks and bonds belong in your portfolio. Branch out with land – the diversification is unmatched. And remember - you don't have to be an accredited investor or have millions to start small. Even a tiny plot diversifies!

Reason 6: Harvesting Tax Rewards  

Few assets benefit your tax strategy as much as investment land. Expenses associated with acquiring, managing and improving land are eligible deductions to offset rental or other income. The IRS lets you deduct 100% of costs like property taxes, lease & management fees, land clearing, fencing, conservation expenses property insurance and more. That can save tens of thousands in taxes on rental earnings alone!

Owning houses or apartments for rent doesn’t net nearly the same tax perks. And when you eventually sell land for a profit down the road, capital gains tax rates are lower than rates on other investment income. Who doesn’t love guaranteed write-offs plus discounted taxes on profits? Sounds like a tax preparer’s dream!

Reason 7: The Ultimate Inflation Hedge

Remember earlier when we discussed land appreciation obliterating inflation? Well now let’s talk about how land itself serves as the perfect inflation hedge too.  

Inflation erodes the purchasing power of money over time as prices rise across the board. Just look at the 6.8% inflation rate in November 2021 – ouch! But land's inherent value remains constant no matter how much prices inflate. Why? Because you can’t produce more land in response to diluted currency like you can with money printing.

The supply is permanently fixed while inflation constantly diminishes money’s worth. But property value rises right along with prices because land itself doesn’t inflate or deflate. It maintains stable intrinsic value immune from greedy government’s destructive practices. What a reassuring safe haven to have!

While inflation wreaks havoc on currency and savings accounts, landowners stay protected. The property acts as a hedge, preserving and even amplifying value when dollars lose punch. So if you’re worried about rapid inflation, buy land for peace of mind knowing its worth floats on solid ground above the noise.

Reason 8: Your Ticket to Passive Income Paradise

What could be sweeter than buying an asset once, then earning regular income from it indefinitely with minimal effort? Helloooo passive revenue! Music to every investor’s ears. Well with land, you can easily create cash flow streams that run on auto-pilot for decades, even generations to come.

Leasing, rentals and paid access are just a few of the many ways land can make you money while you sleep. Do a little legwork upfront to get agreements in place, build any necessary infrastructure, then let the passive profits roll in.

Sure beats grinding at a 9-5 the rest of your life! The upfront land investment also pays off for the long haul since land’s perpetual usefulness lets you lock in lifelong revenue sources. Find me another asset that delivers passive income as easily and reliably as land. I’ll wait...

Reason 9: It's the Only Truly Scarce Resource

“They’re not making any more of it.” You may recognize this famous quote from renowned economist Will Rogers about land. It elegantly sums up the unique scarcity of real estate. The earth’s total land supply is all there is and ever will be, period.

Unlike with commodities, companies can't produce more land to meet rising demand. Inventory is 100% fixed and forever limited, even for waterfront property. The only expansion comes via minor land reclamation efforts – a drop in the global bucket.

And combined with surging population growth projected to add 2 billion more people by 2050? Let’s just say Groundhog Day won’t be repeating itself anytime soon. With demand skyrocketing and availability shrinking, scarcity alone spikes land values. Econ 101 tells us limited supply plus excessive demand equal soaring asset appreciation.

Bottom line - scarcity breeds value when it comes to land. Couple that with relentless population expansion and you’ve got a formula for land prices to multiply. Get your hands on some land before urban sprawl swallows every last scrap. Scarce commodities always pay off big in the end, even if you have to wait decades for the full return.

Reason 10: Creating a Legacy, Not Just Leaving an Inheritance  

Sure, handing down assets to your loved ones is nice. But establishing real estate legacy through land lasts many lifetimes and becomes part of a family’s heritage. Knowing your great-great grandkids will roam the same fields as you is a special feeling money can’t buy.

Physical land endures forever if you desire – money spent on fleeting luxuries vanishes instantly. So don’t just leave an inheritance; leave a legacy by gifting land to future generations. Watching your hard work and vision carry on through their success is priceless.

And beyond sentimental value, land legacy provides security for generations down the road. They in turn can choose to develop, sell or hold the land while benefitting from its growing worth. Each generation becomes stewards, preserving and enhancing the asset. Now that’s leaving a true legacy!

The Bottom Line

Still not convinced that owning land now is the smartest investment on Earth? Let me recap the key reasons to buy land:

- Appreciates faster than gold, inflation and most other assets

- Builds instant equity without mortgage payments

- Total freedom to use/profit from the land

- Strong income potential from leases & sales

- Ultimate portfolio diversification and stability

- Significant tax deductions unavailable elsewhere

- Defensive inflation hedge as prices inflate

- Reliable lifelong passive income stream

- Scarcity guarantees high long-term value

- Leaves legacy and security for heirs

What other single asset delivers this incredible blend of financial gains, generational legacy, and passive income as vacant land? Simple - none!

Land's intrinsic value continues growing indefinitely because of one permanent fact - God’s not making any more of it! People will always need land and you can’t fake its physical scarcity.

There is no virtual substitute for tangible acres of vacant land either. So do yourself and your heirs a favor - claim your stake in real estate legacy and buy vacant land. It's never too late too become a land investor and acquire land.

About The Author

Bart Waldon

Bart, co-founder of Land Boss with wife Dallas Waldon, boasts over half a decade in real estate. With 100+ successful land transactions nationwide, his expertise and hands-on approach solidify Land Boss as a leading player in land investment.

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