Monday, May 14, 2012

Is Now The Best Time To Buy Land?


If I knew that answer I would be retired on my own private island! But I can give you my professional opinion and the answer is YES  and here is why. I have included a chart as a visual aid to this article. To begin with, the land prices are average prices for a 3 county area located between Columbus and Lagrange. Columbus is the third largest city in the state of Georgia. Therefore these prices may be much different than the area you live in. The numbers are important but trends are what we are focusing on. The graphs covers Price Per Acre and Interest Rates (30 Year Fixed Mortgage) from 2007 to 2011.

Let’s discuss interest rates…with our national debt at a all time high and our printing presses running wide open, it is just a matter of time before the rates start moving up.
Many areas are experiencing improved activity in their housing market (this is a localized phenomena). Many areas maybe most areas are experiencing flat prices. Some have predicted we are at the bottom, it seems that way to me!. Housing will lead the way and land will follow later. Everyone needs a roof over their head and a bed to sleep in, you do not have to own land. Land is an investment and the buyer has a very different profile from the home buyer.
From a trend analysis it truly looks like the stars are aligned. I believe it is time to “jump in”. Land prices are at a 10 year low and interest rates are at a historic low. What are you waiting on?  I will promise you one thing, we will all look back and recognize that we had a historic opportunity. You never know you are at the bottom until after the prices start on the way up !!

For Information on Buying or Selling Land contact G. Kent Morris, ALC, RF at      (706) 457-0090

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