This is What I’m Buying With My Own Money Today

Last month, I bought another property in Florida… 70 acres, full of trees, with a lot of beautiful waterfront views.

Waterfront views are nice. And I know they’ll prove valuable when I sell the property. But the trees are the hidden benefit I’m excited about with this property…

As longtime readers know, I’ve been buying Florida real estate for four years now.

I’m incredibly optimistic about the housing market in the southeast. But so far, the houses haven’t been built, so wood prices haven’t really gone up. And the “land rush” hasn’t fully happened yet.

The thing is, people keep having babies. And those families need roofs over their heads. But those roofs aren’t being built yet, especially in the South.

The story is the same, to a lesser extent, across the nation. Take a look…

Looking at the national chart, it’s not a stretch to imagine housing starts going back up to their trend line of 1.5 million homes built a year.

[ad#Google Adsense 336×280-IA]In short, I expect more homes to be built.

Those homes will need land and wood.

I have both.

Plus, I bought them cheap.

As I wait for the housing recovery, I’ll get some solid, tax-advantaged income along the way.

And you might not be aware of it, but timberland, itself, is an incredibly attractive asset…

Timberland might sound boring… but it has smoked just about any other asset class – including stocks – over the years.

In the 1970s, when inflation took hold and stocks did poorly, timberland performed unbelievably well – without a losing year and with many years of high double-digit returns.

The 1970s are of particular importance here… Because we will face a time when stocks will do really poorly, like they did back then.

The total compound annual return on timberland in the 1970s was in excess of 19%. Take a look at total returns on timberland in the U.S. in the 1970s:

It wasn’t just the 1970s. Take a look at the longer term:

Timberland is a fantastic asset to own at the right time… and now is the right time.

Why now? In short, we have three things going for us, particularly in the southeast… Land values are going up. Wood prices are going up. AND don’t forget, the trees themselves are growing fast, compounding at about 6% per year “on the stump.”

On top of all of this, timberland is a “real” asset – not a paper asset. While your paper money in the bank may lose value, your timberland should hold up. The 1970s are our shining example.

This is as good as it gets… And it’s what I am doing with my own money today. I recommend you do the same.

Good investing,

Steve

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Source: Daily Wealth