THERE IS ALWAYS A GROWTH VALUE FACTOR TO CONSIDER
It is true that over the last several years real estate values have declined. In the short term, this can make land purchase less appealing, but in the long term, it presents a unique opportunity to buy land at the lowest prices. Remember this, even counting in several depressions and recessions, including major ones in the late 1800′s and in the 1930′s, overall the value of land rises over time.
On a recent trip to the mainland I came upon a book, America: Then and Now, and it fascinated me, so I added it to my library. I was astounded by the growth of land development depicted in that book, and since its publication in 1992 land development and land values have grown even more significantly. My family has been in land development for generations, as have I for about 30 years. So I feel safe to say that over time real estate values increase, as they will continue to do in the future.
I want to share with you several of the projects that I found which show the prosperity and spirit of American enterprise.
THEN
NOW
Waimea Bay 2011
THEN
Westwood California in 1922. Development lots sold for less than $1,000.
NOW
Westwood California in 1992. The 1920′s era homes now sell for more than $1 Million Dollars
THEN
Post WW2 housing in Levittown, New York. A house sold for $8,000.
NOW
Some post-war original models, considered historic landmarks, sell for $200,000 or more today.
THEN
Miami, Florida Skyline 1925.
NOW
Miami, Florida Skyline 1992.
THEN
Hollywood, California in 1923. Development lots offered for first time.
NOW
Hollywood in 1992. Upscale homes in the legendary movie-making capital.
Remember to add the growth value factor when you consider buying land. Buying land to build on in the long term is a prudent investment. However, some of our land owners have experienced short term gains as well, selling their properties after just a year or two.
