Why Buy Land in This Economy?

This is really a good question and one that a lot of people are asking right now. It seems that many potential land buyers are so nervous about making a purchase commitment that they are allowing tremendous opportunities to go by the wayside. If we truly are on the edge of the abyss and destined for total economic collapse, then those concerns might be viable. But if not, by the time we actually start to see a physical recovery, it may be too late and the attractive deals will be gone. Remember the adage, 'buy low, sell high'? That principal remains true now more than ever in real estate, especially in vacant land and especially in this economy. Let me see if I can build a case to justify why now is a good time to buy.

Prices are low but not free falling. Prices for vacant land in our county have dropped significantly but not precipitously suggesting some bottom resistance in the land market. The latest MLS statistics indicate current bare land values are off by just 14% over the past 2 years compared to residential homes in the same area that are off by more than 40% during the same time period. In other words the prices have come down slightly but the bottom hasn't dropped out like it has in houses, suggesting that land may hold value better over the long run

Supply is high. Remember your Economics 101 class? Markets are driven by supply and demand. Right now the demand is low and the supply is high, making it a buyers' market. As of this date there are 308 vacant parcels on the market. That is roughly the same number that was available in 2007, but as I mentioned before, its cheaper now.

Land is scarce. Will Rogers once said "Buy land, they ain't making any more of the stuff. " I know this quote is often over used but it's also true. Especially in Oregon where governmental controls have made it very difficult to further divide or even build on rural property.
Choice parcels are getting harder and harder to come by and once they are gone, they are gone for good.

Upside potential. If you buy a property that grows trees (mostly what we sell), those trees will continue to grow no matter what the economy does. In our area, for example, on average they increase 4 - 5 % in volume per anum. You can't get that kind of return on a CD.

Sanctuary. Consider the value of retreating to your piece of paradise just to escape and get away from it all. You will be surrounded by abundant flora and fauna in an environment where peace and tranquility abound. You can have your own private sanctuary to regroup and gain perspective. I can't think of any other investment vehicle that offers those kind of therapeutic attributes.

Security. Just think of the potential for self-sustainability offered by owning land. It's a return-to-your-roots experience. You can grow a garden, cut your own firewood, mill your own lumber, raise animals and live a net-zero existence. Who doesn't want that?

Legacy. In a recent trip to Europe, I stumbled across a family that has managed to keep their farm in the same family for over 600 years. You don't see that in America but how would it be to own a piece of land that you can pass to your posterity for generations to come?
There you have it, seven good reasons why you should go ahead and purchase your piece of the American pie. And remember, Westslope Properties can help get you there!