Is buying land in California a good investment?
You may have heard this statement, “as the U.S. goes, so does the world; and as California goes, so does the U.S.” The population and economy in California continue to grow together. People are buying land in California because it is the 10th largest economy in the world and is the nation’s leading industrial state, ranking 1st in almost every manufacturing category. Computers and aerospace manufacturers are among California’s largest publicly owned corporations. Nearly three-fourths of the industrial workforce is employed in either Los Angeles, Long Beach or Orange County. The ports of Los Angeles and Long Beach account for the third-largest shipping and receiving destination in the world. Buying land in California in the right areas, offers considerable opportunities.
Why is buying land in California, specifically Los Angeles County, is a good idea?
Los Angeles County is the 10th largest economy in the world and has been referred to by Bank of America as, “the undisputed economic capital of the state of California.” Based on this fact, you would think land banking in Los Angeles County would be prohibitively expensive…and for most, it is. Most pre-developed land in this area is acquired for upwards of $100-$400 per square foot. However, there is land available for independent purchase in the path of development in Los Angeles County for less than $2 per square foot. Within sixty miles of Los Angeles exists:
- 1 in 17 Americans
- 46% of California’s rapidly-expanding 38.5 million population
- 45.5% of the total bank deposits in California
- Corporate headquarters of 56 of the 100 largest companies in California
- A large proportion of the $28 billion/year aerospace industry
- The largest port system in the United States and the third largest in the world
- Over 23,000 Acres of land has been consolidated for solar development
Is buying land in California affordable?
Absolutely. Land in the Antelope Valley region of Los Angeles County is quickly being incorporated to accommodate the population and industrial expansion east of Los Angeles. Many investors begin investing with about $20,000 from savings or IRA accounts. It is important to understand the value of a real asset that is not associated with an unpredictable stock market, volatile world economy, or pork belly futures market. Land banking represents an opportunity to diversify your assets (cash or IRA Funds) to significantly help secure your financial future. Well-researched land in the path of development offers an affordable option to diversifying your portfolio.
Never before has buying land in California been this popular
The ongoing struggle with Wall Street to recover loses and regain the trust of investors has many looking for alternative investments. Families, friends and solo investors are able to afford parcels ranging from $20,000 – $200,000. Once invested, many investors feel they can recover their losses from the stock market crashes and increase their chances of enjoying a comfortable retirement. Historically, real estate has been a popular investment for the wealthy with several hundred thousand dollars to move between stock investing and real estate purchases in tune with the market cycles. Most Americans do not have that amount of money to move freely, but most Americans do have the ability to roll over an old retirement account or diversify their current investments. Opportunities of buying land in California in the path of development are available and affordable if you act quickly.