Properties

 

 

 

 

Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.

F. D. Roosevelt

 

Most people turn to stocks, bonds, and mutual funds when they want to invest for retirement. These assets can be good sources of passive income, but some retirement savers prefer to mix in alternative investments, such as real estate, as well.

Property – alongside cash, bonds, and shares – is one of the four most common types of investments, distinct, unique, and the easiest asset class to understand. Control real estate and you control the economy.

land
real-estate
hotel resorts

Investing in properties can reduce the risk profile of your portfolio and increase its long-term expected returns. With today’s high financial market volatility and uncertainty, the risk of going into a new recession, and the central bank policies increasing the risk of inflation down the road, investors should seriously consider allocating a portion of their portfolio to real assets.

It is not a hazard that farmland and land in general keeps on appreciating in value over the long run. The market mechanisms that cause farmland values to rise over time still exist today and are just as strong as they were 20 years ago. It is a simple supply and demand imbalance that can hardly be fixed other than by increasing prices over the long term.

You need no unusual knowledge or intelligence to conclude that the real asset class investment has no downside and potentially has a substantial upside.

Historically, the volatility has been relatively low. After all, the supply is limited, the demand is growing and the product is a necessity that cannot easily be substituted. It is important to note that investing in farmland does not imply farming the land. You are not the farmer; you are just the landowner. The farmer rents the land from the investor, and in consequence, most of the risks are transferred to the farmer and a certain cash return is often guaranteed to the landowner. Short-term variations in commodity prices are a risk undertaken mostly by the farmer.

Farmland values do not fluctuate with the stock market, the bond market, or even the real estate market. The diversification benefits are stronger than average and very appreciated during the occasional bear market.

The supply of farmland is limited, but the global demand for agricultural commodities is constantly growing. What happens in such market environments? Prices eventually have to increase unless the supply follows the demand.

The reason why farmland has historically appreciated so quickly is the imbalance between supply and demand of agricultural commodities. This imbalance still exists today and is just getting worse as demand grows faster than supply.

Among other things we invest in complex hotel resorts and offer investments in the (agricultural) land in Masuria. The perfect shot not only for luxury hotel resorts developers…

Masuria, Masurian Great Lakes District or Masurian Lakeland is a lake district in northeastern Poland, which contains more than 2,000 lakes. Masuria is among the 28 finalists in the global plebiscite for the new seven wonders of nature, held in 2011 by the Swiss New7Wonders foundation. In the final voting, the expert jury headed by Professor Federico Mayor Zaragoza, former Director-General of UNESCO, ranked the Masurian Lakeland as the fourteenth. It is one of the most famous lake districts in Central Europe.

 

Buy land, they’re not making it anymore. Mark Twain

Land like gold…

 

Publications

02/17/2016 Barbarians at the farm gate…
09/27/2015 Buy land, they’re not making it anymore. In a land of thousand lakes…

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