Throughout history, land has proven to be a solid long term and short term investment in both good times and in bad. Many investors have taken interest in investing in farm land for sale in Florida because it offers appealing portfolio diversification opportunities, is considered a safe investment when compared to other types of investments, and offers investors a tax shelter.
Below is a summary of some of the benefits of investing in Florida farm land:
Capital Security and Low Levels of Risk
Farm land property values are not as volatile as the values of residential properties, which make them safer investments. Investments in farm land for sale in Florida are backed by one of the most stable assets (land), are limited in supply, and very unlikely to decrease in value. Historical data has shown that agricultural land investments can provide strong capital protection over extended periods of time.
Hedge Against Inflation
Agricultural lands have been found to have a positive correlation with inflation. The value of these types of investments tend to increase faster than inflation, and make them an effective hedge against inflation.
Income Producing Asset
Florida farm land for sale is a stable income producing asset. These types of investments have many different potential income streams to offset maintenance and holding costs including developing the land, harvesting its resources, leasing it, subdividing it, hunting or fishing, cattle ranching, or drilling for natural resources such as oil or gas.
Farm land returns have a negative correlation with more traditional investments such as stocks or bonds and only a slightly positive correlation with other types of real estate. These features make farm land an attractive portfolio diversification tool that can help lessen the impact of the market volatility of other investments.