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Land Creates Wealth

Why Rural Real Estate is So Attractive

October 29, 20233 min read

"Land investment is the cornerstone of enduring wealth; it's a solid asset that stands the test of time and keeps growing, as solid as the Earth itself."

Rural real estate is a triple threat that delivers on three key fronts: profit potential, enticing tax advantages, and unwavering stability. This unique asset class combines the potential for substantial profit growth, thanks to factors like scarcity and demand, with tax incentives that can supercharge your returns. And it does all of this while offering a rock-solid foundation that remains steady even in turbulent economic times. Investing in land is like finding the golden trio in the world of finance.

Here are 3 reasons why rural real estate is the best investment asset class!

Reason 1: Better Deals In the realm of real estate, the mantra "You make money when you buy, not when you sell" holds true. Profit margins are inextricably linked to finding incredible deals, and rural real estate offers a superior profit potential compared to properties in suburban or urban areas. The key to this potential lies in the substantial price spreads found in rural locations. While it's relatively easy to assess the value of a 1500 sqft suburban home, estimating the worth of a house on 10 acres in the countryside can be far more challenging. Leveraging this advantage, I've consistently acquired rural properties at significantly discounted rates, setting the stage for substantial profit margins upon sale.

Reason 2: Better Tax Advantages Rural real estate is a treasure trove of tax advantages, surpassing those of many other asset classes. It amplifies the already attractive tax benefits of traditional real estate. For example, agricultural land enjoys a much lower tax rate compared to conventional real estate. Many rural communities are located within Qualified Opportunity Zones, offering a plethora of enticing tax incentives, including the remarkable opportunity to pay no capital gains tax on property appreciation when held for at least a decade. What's more, numerous grants are available to rural property owners. Personally, I've received grant offers from the USDA to enhance my land with improvements like fencing, irrigation, and cactus eradication.

Reason 3: Better Fundamentals Understanding the principles of supply and demand doesn't require an economics degree. An asset with limited supply and growing demand presents the greatest opportunity for appreciation. Land, as a finite resource, remains immune to the creation and destruction that can affect stocks and bonds. Its supply is inherently limited, and as populations expand, so does the demand for land, driving its value higher. Additionally, as a physical asset, land is more resilient to the economic factors that often trigger volatility in the stock market. Rural real estate outshines other asset classes in terms of appreciation and resistance to economic downturns. Even in today's challenging financial climate, my previous investments in rural real estate have delivered significant profits.

Farm land appreciation

So, as you embark on your journey toward financial growth and security, remember that rural real estate is no ordinary asset class; it's the golden trio you've been searching for. With the promise of remarkable profits, tax incentives that pave the way for wealth accumulation, and an unshakable stability that withstands economic storms, rural property investment stands as a beacon of opportunity. It's the surefire path to building a brighter financial future, where your investments flourish, your tax burden lightens, and your peace of mind remains unwavering. Take the leap, explore the vast landscapes of rural real estate, and witness your wealth flourish like never before.

If you are ready to take the next steps in your rural real estate journey, drop me a line at Gary@ruralrich.com!

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