I am a broker specializing in the purchase and sale of raw land in under served areas of Nevada, Utah and California. Land in remote areas is a great commodity that can be bought and sold similar to precious metals and cryptocurrencies such as bitcoin.
Numerous investors are now seeking alternative investments with the following attributes:
- Physical assets that provide reduced risk to capital.
- Better return than traditional fixed income techniques to take the place of lost income.
- Low or negative correlation to conventional asset classes such as stocks and bonds and to mainstream alternative investments such as commercial real estate and hedge funds.
- Exceptional performance in an inflationary environment.
- Good long-term fundamentals to encourage capital advancement in an investment environment where financial and valuation uncertainty are at historical highs.
- Easy, durable investment structures, ideally involving primary ownership of the underlying asset.
Considering current market conditions, many investors are seeking alternative asset classes to augment returns without drastically altering their overall risk profile. Direct investment in raw or commodity style land has the probability to provide all of the above attributes. This has resulted in rising interest from the investment community in recent years, although the asset class still symbolizes a tiny proportion of most investors’ portfolios. Historically, the niche has been dominated almost entirely by local or speculative buyers with the relatively tiny number of investment buyers having had almost no impact on demand. If a trend of rising demand from professional investors starts it will provide relevant additional support for land values in the coming years. Clearly, early movers will stand to benefit.