Investing in Land

Last August 1 in Financial Planning magazine, Morningstar Investment Services director of research William Harding encouraged advisors to design a different mix in their individual investors’ portfolios.  In confronting a difficult stock market, he suggested, it was time to give thought to alternative investments that, in Morningstar’s world,  “includes nontraditional asset classes such as commodities, real estate, infrastructure, private equity and venture capital”

Good advice and well in advance of what became a deeper market trough.

In Harding’s view, real estate “can include raw land, commercial real estate and residential real estate…”  And there is no better, long-term investment than raw land.  Fact on the ground have shown him to be right.

One to look at is the payout just announced by Walton International on one of its Canadian properties.  In any market, a better than 13 percent annual compound rate of return is worth notice.

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