Investing in Land

In a May 24, 2010, the Malaysia Business Times reported that:

“WALTON International Group, a Canada-based real estate investment company, is calling on Malaysian retail investors to invest in pre-development land in Jackson County, Georgia in the US.

“Its senior vice president for marketing and training in Asia, Wyman Chan, said there are 161ha for investment, divided into 1,800 units or plots and the minimum investment for each is US$10,000 (RM33,200).

“‘We have sold 100 units worth more than US$1 million (RM3.32 million) since late April, when we launched the project in Asia. Up to 30 per cent of the investors are Malaysians. We are bullish to sell the remaining units by July this year,’ Chan told Business Times.”

Read more here. And here.

A recent Associated Press report on the most recent fluxuations in the stock market painted a stark picture:

“The 348-point, or 3.2 percent, drop on the Dow was the worst day for the index since February 2009 when the market was swooning and headed toward a 12-year low. The Dow has lost 631 points, or 5.7 percent, over the last three days.”

Just days later, CBS MarketWatch noted the rise in commodities, likely in response to volatility in the stock market:

“Gold futures inched up Monday after fluctuating for most of the session, with concerns about the global recovery ultimately gaining the upper hand.”

Of course there is no commodity that has held its value longer than land.  A number of companies have been at the forefront of making an investment in raw land accessible to a broad range of investors, but increased interest is being driven by uncertainty elsewhere.

As one blogger put it, “…land investment can produce good medium to long term returns and it can be one of the safest and smartest ways of investing your money, particularly if the land is located in an up and coming area.”

A number of blogs have sprung up examining the value of an investment in raw land.  Likely in response to the uncertainties of the stock market and a renewed interest in self-directed retirement investing, these outlets are diving into the approaches and methods that can best serve an individual’s planning.

These new sources supplement the more traditional opportunity and advice to be gained by working with companies, like Walton International,  with a history of raw land investing.  One of the new breed blogs blog had this to say recently about the matter:

“The value of land has been soaring over the years thus making it a highly profitable investment alternative. Because land is a finite commodity, it becomes more valuable as the years go by.  So if you want a stable medium to long-term investment that offers the potential to earn astounding returns, then why not consider a land investment?

“The continuously increasing population and migration of more people to towns and cities has brought about an ever increasing demand for housing.  Because of the growing population, there is a need for towns and cities to increase in size, thereby leading to mounting demand for the development of the surrounding land.  All these factors are what make land investment an appealing proposition.”

Read the rest of the story here.

Walton International Group Inc. and Walton Ontario Land L. P. 1 announced today that Walton Ontario Land L.P. 1 completed its initial public offering, raising gross proceeds of $18,555,500 and issuing 1,855,550 units.

Proceeds of the offering will be used to purchase and manage parcels of land comprised of 155 acres of land located near Toronto in Alliston, Ontario, and 300 acres of land located in the southwest quadrant of the City of Ottawa. The Partnership’s investment objective is to maximize returns to limited partners through the acquisition, management, concept planning and eventual sale of these two properties.

Read more here.