* The Wall Street Journal, We’ve all heard the talk that the real estate boom might be leveling off, but even the experts who predict a cooler housing market recognize that the same trend doesn’t hold true for rural land. In fact, all over the country, land buyers are taking advantage of affordable prices for undeveloped properties before they skyrocket, leaving many potential buyers priced out of the market. A July 2006 Wall Street Journal article by Jeff D. Opdyke entitled “The Rush to Invest in Land” addresses this very phenomenon, pointing out the benefits of buying rural land—whether you plan to use it now or keep it for later use. “Some people are buying dream lots now, while the land is available and prices affordable, with plans to one day build a vacation or retirement home,” the article states. “Others are investing in recreational property they want to use today.” The strength of the rural land market was echoed in a March 2006 USA Today article by Sue Kirchhoff, which examined the flourishing sales of land in places like Florida, Texas, and Illinois. In that article, Kirchhoff quotes an Illinois broker who seems confident the rural market will stay strong. “‘It's not going to burst at all. In fact, I continue to see a strong rural real estate market for years to come,’ says Ray Brownfield, a real estate broker at John Greene Land Co. in Illinois.” As The Wall Street Journal article points out, however, the time to buy at lower prices may be running out in certain regions. “Prices for undeveloped land in many parts of the country are shooting up,” the article states. “Around the country last year, farmland values rose at their highest year-over-year rate—11%—since 1981, according to the Agriculture Department.” One important point that land buyers should remember: it is critical to research how a particular piece of land can be used prior to buying it. In most cases, buying from a reputable land developer can be a very smart financial move. Land developers often bring in the infrastructure needed to build homes prior to selling their land parcels, alleviating the possibility that bringing in water, electricity, or a septic system, for example, could pose a problem down the line. The best news of all for rural land buyers is that this type of land can appreciate in value quite a bit faster than houses [since] while a housing market can be overbuilt, land can’t.”

Sources “The Rush to Invest in Land” by Jeff D. Opdyke, The Wall Street Journal, July 22, 2006 “Hot Real Estate Prices Extend to Rural Land,” by Sue Kirchhoff, USA Today, March 9, 2006