It’s Time To Buy Dirt | Why 2023 is The Perfect Time To Invest In Land

In the wake of the SVB failure, with inflation rising and a maybe/maybe-not recession looming, many investors are looking for a safe place to put their money.

For some, investing in land used to feel like something reserved for the very wealthy, but more and more Americans are finding real estate to be an incredibly lucrative addition to their portfolio.

One of our favorite local real estate agents, Lauren Davis told us,

“My parents and grandparents have always told us to “buy dirt.” Our Oklahoma land investments have seen a far greater ROI than anything we’ve done in the banking market in the last 10 years.”

If you’ve been considering investing in land, now really is a great time. Land is one of the most stable, tax-friendly investments you can make - and the Sardis Lake area here in Oklahoma is no exception. 

Thinking Long Term

An inflation graph to show why you should invest in land

Investing in land is generally considered a long-term investment. If you’re looking for quick ROI, land may not be for you as it is not a liquid asset.

The longer you can hold onto your land, the better the return on investment is going to be.

Over the last 50 years, the price per acer has gone up dramatically, with virtually no significant decline year over year.

The Benefits of Investing in Land

Investing in land is a great way to diversify your portfolio. Unlike stocks and bonds, which can be affected by the economy and interest rates, land values tend to rise over time as people demand more housing and commercial space.

Land investments also provide tax advantages: you can deduct any interest you pay on loans used to purchase the land or improvements made on it; these deductions are not limited by how much money you make or what type of property was purchased (as they would be if you were buying stocks).

How to Evaluate Potential Land Investments

Evaluating potential land investments is a process that requires careful consideration. There are many factors to consider when evaluating a piece of property, including location, zoning and access to infrastructure.

Land investors should take into account the following:

  • Location - The most important thing to look at when investing in land is its location. The ideal location will be one that has high demand for housing or commercial space (or both). You want your investment property to be close enough to major cities or towns so that residents can easily commute there for work or shopping but far enough away from them so as not to compete with existing businesses for customers.

  • Zoning - Another factor when evaluating potential investments is zoning laws governing what type of buildings can be built on the land you're considering buying.

How to Protect Your Investment

  • If you plan on buying and selling multiple properties over time, it may be worth setting up an LLC or corporation for those purposes instead of simply purchasing as an individual investor – especially if you want to take advantage of tax benefits associated with these entities (such as depreciation).

  • Conducting due diligence before purchasing any property is essential; this includes researching comparable sales prices in order to determine whether or not a deal makes sense financially."

Is It Time to Buy Dirt?

As you can see, investing in land makes sense for many reasons. It's a stable investment that will not be affected by market fluctuations as much as other investments and it has the potential to provide you with a steady stream of income.

If you are looking for an alternative to traditional stocks and bonds, consider buying some land!

Consider Timber Ridge Estates

Timber Ridge offers small-acre homesites in our gated community that have already appreciated in value since becoming available in 2021.

We’re also close to private hunting land, and other rural properties expected to increase in value over the next several years. Schedule a tour today – we’d love to talk with you about investment opportunities right here in Southeast Oklahoma.  

Have questions or concerns about financing? Check out our one stop shop for all of your financing needs.

*This is not intended to be financial advice.

Brenda Kinsey