Some of America’s brightest and wealthiest people have revealed they are looking to invest in real estate as a safe bet in today’s economy.
John Malone is now America’s biggest individual landowner. The 70-year-old cable pioneer and chairman of Liberty Media now owns 2.2 million acres, after purchasing more than 1 million acres of timberland this year.
Now is the time to buy land, he said, because of low borrowing costs and low prices. Malone told the Wall Street Journal regarding real estate that land “is a pretty decent hedge on the devaluation of currency.”
Malone started snapping up land in the 1990s, buying in Colorado, New Mexico and Wyoming. He bought the 290,100-acre Bell Ranch in 2010 and uses it to raise cattle and horses. Mr. Malone said his main interest is land conservation and maintaining the sustainable forestry programs with the New England parcel.
There are those who believe the wealthy are likely to continue looking at large tracts of land as the safest long-term, hard assets at a time of extreme market volatility and low borrowing costs.
What does it mean for you? If you live in the Tucson, Arizona area and are looking to invest or just buy a lot for building a home, it means now is the best time to invest.
New figures show Real estate prices in Tucson dropped 4.53 percent from July to August, and they have dropped 1 percent from August to September this year. Interest rates remain around 4 percent or even a little lower.
One of the best reasons to build a home in is the decline in prices of already existing homes, although the cost of buying new homes are up from last year. With Tucson real estate statistics showing lower interest rates and the lower cost of owning a home versus renting, interested buyers may want to take advantage of home ownership this fall. The average price per square foot is $87.00, a decrease of 13 percent compared to last year, so this is good news for the potential buyer. Interest rates remain around 4 percent or even a little lower.
The real estate market has slowed down a little recently because the tax credit deadline has expired, but the market still continues to be attractive because real estate prices have declined. Over 603,000 homes have sold this year compared to 595,000 last year. Since home sales have started a slow growth, this means land will be more valuable.
Those interested in financing may find interest rates as low as 2.65 percent. The price of renting in the area continues to rise, with an increase of 3 percent, or $19.00 a month since last year. As of August, 2011, house rentals are as high as $1100.00 a month and higher depending on the neighborhood you choose to live in. Compare the cost of each, as building may be the more inexpensive way to go during the long haul.
New homes and land investment might offer the best opportunity. If you are a homebuyer, the struggling market could be your advantage. “I don’t think we’ve ever seen a better time to buy” said Tricia Friedrich, Marketing director at Western land which operates Red Hawk at J6 Ranch just outside of Tucson in Cochise County. Call 1-800-797-0054 to arrange a private tour.
The experts and the data suggest now is the time to invest in land in the Tucson area. http://www.westernland.com