While many financial advisers and the public are scrambling to invest their money into Bitcoin and other cryptocurrencies—I’m not. It is too early in the game to be bowled over by cryptocurrency because of the many red flags it displays likening it to a massive bubble waiting to burst. I still believe that real wealth is built on a solid foundation of appreciating assets that will generate income as time passes and not on getting rich schemes that tend to burn you more often than not.
Real Estate Investments
One single asset class that is most common to wealth builders across the world is real estate. One thing that drives real estate is the demographic market behind it. No matter what, people will always need shelter—therefore, they will still need real estate. As the population continues to grow around the world, then the need for real estate also grows.
Real estate can pertain to either commercial real estate, residential real estate, or industrial real estate. Commercial real estate is a property solely used to conduct business instead of living space. A residential real estate is a property with the sole purpose of living in it. An industrial real estate property is for the sole purpose of producing and manufacturing goods.
Did you know that agriculture is a real-estate based asset class? Yes, it is! The benefits of owning agricultural land are akin to holding a residential or commercial property, and the marketing demographics behind it are also the same. How?
Let’s take a look at the economy of supply and demand. As the population in the USA grows, so does the needs of the community. The more fiber for clothing, fabrics, etc. they need, the more timber, and food supplies they must have. As more people need to eat, the demand for protein also increases. What this means is that more agricultural land is required to raise chickens, cows, and other sources of meat. A lot of farming lands grow fruit trees, vegetables, timber, and specialty products like truffles.
Ever since time, the expansion of civilization went hand-in-hand with the development of agricultural technologies. It used to be that our ancestors were poor hunters-gatherers, which evolved to farming. Nowadays, agriculture involves low-cost overhead but with higher crop yields than ever. Thanks to innovative methods like robotic tractors, sensor-guided and GPS precision farming.
What this all means is that many people shun farmland as not worthy of their money, but the reality is it is as beneficial as any other real estate property anyone could own.
Learn more about how Black Truffle Investments are returning 15% average returns every year. Black truffles are the agricultural investment you need!