“As we enter the Summer we came across an interesting article. It discusses the many benefits of owning real estate and the reasons to use professionals for advice and consulting which is something we would agree with. It also advocates for recreational land as a sound investment which we would also agree with them on.
However, it does briefly refer to land as a hedge against inflation, which is a commonly used phrase, but might warrant expanding on a little further in light of the current circumstances. During periods of inflation the dollar loses its purchasing power which is what people care most about. Over time, the same dollar buys less and less of a certain “real” item. Therefore people have an increasing appetite for “real” assets in times of expected or realized inflation. Real Estate is a favored, tangible asset during these times because it can create income over time, can be used for enjoyment, can appreciate but most importantly it pays you back when you sell it in inflation adjusted dollars. The inflation adjusted return, if no other return occurred, would be zero but compared to cash the relative return would be desirable. Because of inflation it would take more dollars to buy that same asset, you had purchased earlier, today. In other words it maintains its purchasing power, therefore the hedge has been effective against inflation. Hopefully some of the other benefits discussed here and in the article have also occurred and that is an additional benefit. Solomon said wisdom comes with many advisors, so we believe the chances of these additional benefits occurring are increased with professionals assisting landowners in their purchase decision and management. If you are considering an investment in land we hope you will consider Oakwood Realty Group as your trusted advisor.” Hunter Brant, President, Oakwood Realty Group
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