In the modern marketplace, volatility is a fact of life. Fortunes can be made and lost overnight as virtual money changes hands at a frenetic pace. It can be difficult for the average investor to keep up with the bubbles and crashes of a hectic trading climate. This is why, in times of economic turmoil, investors with long-term vision turn to real property. Real property is not just numbers on a computer screen: it is physical wealth that has remained an attractive form of investment for generations.

Examples of Real Property: Land and Gold

Land and gold are two of the most common forms of investment property. They are tangible possessions, unlike purely financial investments like CDs, stocks, and bonds. They have been the foundations of economic growth in many societies throughout history. Even in our digital age, investors look to land and gold for the advantages they offer over immaterial sources of wealth.

Chief among these advantages is the negative correlation between stocks and real property. Generally, the value of real property does not change as rapidly or as radically as that of stocks. When the stock market suffers a serious blow, many people put their money in more stable, long-term investments. Land and gold are more similar to each other than to fiscal assets, because they are not severely affected by cyclical economic shifts. However, there are some key differences that may make land more attractive than gold for many investors.

Choosing Land

Many economists consider land even more stable than gold. Traditionally, gold had value because societies considered it a form of currency. During the twentieth century, however, many countries, including the United States, chose to rely less on gold when determining the value of their currency. This reduced gold's appeal. Land, unlike gold, has intrinsic value. In other words, land has substantial worth regardless of changes in political and economic policy. While the future of gold as a unit of barter may be uncertain, land will likely continue to attract investors for ages to come.

This is especially true of farmland. Beyond its intrinsic value, land has great worth to investors for what it can produce and contain. Its inherent value can be increased by:

• Producing crops
• Setting up animal feeding facilities and livestock operations
• Finite amount of arable farmland
• Renewable Energy positively impacts land values
• Farmland generates annual revenue
• Improvements made to the land are depreciable
• Potential for multiple revenue sources (Cash Rent the land, and Lease the land for Wind Energy)
• Landowners are benefiting from advances in modern farming technology and improved efficiencies

These growth options are unavailable for gold. Farmland is far more versatile than gold, and can expand an investment portfolio in many useful ways.

Contact Us

KuperLand is a farmland investment company that helps clients take advantage of the benefits of farmland ownership. We find available farmland that can enhance the portfolios of beginning and advanced investors alike. Don't hesitate to contact us if you are interested in expanding your assets to include valuable, productive farmland in the American South and Midwest.