Many have predicted the stock market volatility, but not many are offering alternatives until the stock market comes back. The “Land Banking Lady” offers a few suggestions to keep your money for safe.
The most important criteria for keeping our money safe is to protect the principal. Right now the stock market is very volatile and too dependent on emotions and fears. If your money should be in the low-risk category, you need to put it in a place where your principal has less chance to disappear, and where it can possibly appreciate in value well above inflation. Wealth building is also crucial if you do not expect to have an income in the near future.
Long-term tangibles are the key if you want to build wealth. Many invested in gold, but now it is a little too late because all those who rushed to invest in gold have caused the price of gold to increase up to $797 per ounce. Sadly, when the stock market comes back gold prices will soon go down drastically.
Right now the best place to invest your money is in California Land that has been carefully selected and priced at 10 percent to 20 percent below current market value. For information on how to buy undeveloped land see my article in the “Nuwire Investor” at http://www.nuwireinvestor.com/howtos/how-to-evaluate-undeveloped-land-investments-51891.aspx. History has shown that over time land appreciates faster than homes. For example, over 30 years ago, land in San Jose, California cost approximately $8,000 per acre. Homes, at that same time, cost $24,000. Now that land costs over $1 million, and the home cost just above $650,000.
Be prepared to hold it until the demand for land increases, possibly five to ten years. Make sure to purchase the land yourself or with your self-directed IRA. You will receive a grant deed, which can be sold, inherited, or leased. Such ownerhship rights are protected even during bank failures. Make sure that you do not invest in real estate in such a way that you receive stocks rather than a deed. These stocks can be effected by volatile stock market activities, and costly business expenses.
Also consider investing in a “Tenants-in-Common” (TIC) or shared ownership. A TIC is different from a timeshare in that you actually have full rights to ownership interests and again you hold an actual grant deed. A TIC allows you to invest in carefully chosen real estate with less overall investments. For instance, if you have only $72,460 that you want to pull out of the stock market, then Pleasanton, Calif. has been holding its property values above many other areas in California. I know of a Private Winery Estate Home with views of the newly popular vineyards in Pleasanton and Livermore. It has 5 bedrooms, 4.5 baths, a pool, a bonus room with a bar, and is fully furnished. You can enjoy staying there part of the year, then sell it later. Again your principal would be protected with possible increase in value.
Gina Lynell Smith is a Land Banking Specialist, Contact her
