So what does all this have to do with land? Traditionally when returns decline in traditional investment outlets, investors start to look for investment opportunities outside normal channels. For instance, some have turned toward gold as an option. Now many are turning to buy land as a safe haven for their funds.

Let me give you an example. I first cut my teeth on land investing in 2004 in the North Florida area. I was associated with a real estate firm that all they did was broker land. In early 2005 the office was receiving a phone inquiry every 15 MINUTES! In fact, the office could not keep pace with enough land parcels to service the demand (who were ready to pay with cash).

Why was there such an influx of activity to buy land? I asked this question at that time to many perspective buyers. About 80% of them were looking for an investment option outside the stock market. If you remember, the stock market returns were flat for much of 2003 and 2004. So some investors were growing impatient with returns there and begin to research other creative investment options. In fact, the Miami Herald wrote a story about this in 2004. They stated that one of those creative options was to invest in land and suggested North Florida is where someone should invest. After that article, the land brokerage was surprised to experience a flurry of activity.

Conclusion: Stock market returns flat – investors seek other investment outlets.

The question now is: If most investors have currently lost money in the stock market are they going to search out other places outside the stock market to invest in? Absolutely!

So if you are going to invest in land, strike while prices are still low. Because when land investing becomes more mainstream as it was in Florida in 2004 and 2005 as some point there won’t be enough affordable parcels of land available to meet the demand.

How can we serve you? We can help you to connect with an affordable parcel of land that will meet your investment needs. Call 1-877-8VACANT (877-882-2268) or email us at info@vacantlandguide.com today to learn more.

The stock market is down 40 percent over the year. It continues to decline. The Dow is down about 2,250 points in seven days. The economy is stronger than this paniced market, but is being tugged down by weakening sales, tight credit and a dozen other factors.

The stock market appears to have decided that the $700 billion in federal money will not put a floor under the fall if it’s used as Secretary Paulson testified he plans to use it. Op-Ed articles in the WSJ and other papers have presented alternatives that deal directly with stopping foreclosures, refinancing mortgages, capitalizing banks, etc. I’ve yet to see a proposal for ending credit-default swaps and unfathomable derivatives, which together, as much as anything else, set us up for this mess.

My own uneducated sense of this is that we will work our way into a recovery, one property at a time, with one buyer and one seller finding a price. If sellers don’t budge from inflated valuations, all the liquidity in the world won’t get buyers to buy.

Everyone is waiting for the pain to stop.  I don’t think we reverse this trend without pain being spread widely and deeply. A price set six months ago won’t work today. Each seller has to fight this fight with himself and his lender. It will be ugly and hurt a lot. A property that is overpriced by 100 percent needs to come down 50 percent.

Brokers are encouraging their clients to drop 10 or 15 percent. Recent WSJ ads are coming down by 25 to 30 percent or more. I’m interested in what brokers on both the seller and buyer sides think about this predicament, which has ensnared us all.