Disclaimer – I am not licensed or certified to make investment recommendations. At the time of this posting, August 24 the DOW futures are down about 700 points. The Dow fell 3.12% on Friday, August 22. Therefore I decided to expound on ‘Investing’. I read something many years ago that has shaped my investing philosophy….. Ecclesiastes 11:2 Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
I believe it is prudent to diversify when investing and ‘yes’ I believe a portion of your portfolio should be in real estate. By real estate, I mean income producing (rentals or leases) and LAND. Your LAND investment should also be income producing. This could be crop land, pasture land or timberland. Crop land produces income through farm rents and Timberland produces income through hunting leases and periodic thinnings and harvesting. I do not consider the home an investment, why you ask? Even though banks and others do, everyone needs a roof and a bed and unless you are willing to sell and move into a tent, that investment may never be available for other expenditures and cost of living. I would also add that by the time you add your principal and interest payments over a long period of time then sell your house you probably didn't make a much money as you think.
So how should we invest? Following is a chart that provides lots of diversity and while the market recently took a big hit, remember GOLD rose 6.82% over the last 30 days and SILVER rose 5.69% The point being that when one asset class declines in value others in your portfolio may go up.
Remember to invest wisely and above all…Diversify!
To view my listing visit AllSouthLandandHomes.com If you have questions about buying or selling LAND contact G. Kent Morris, ALC, RF @ 706.457.0090