The coronavirus (COVID-19) pandemic has dramatically increased market volatility across the globe and is pushing investors to seek out the safest place to invest money. Land has a low correlation to stocks and bonds; buying land is a good way for investors to hedge their portfolio. Hard assets like timberland and farmland are a good hedge against both inflation and economic downturns and can provide a continuous cash flow from leases and timber income, as well as tax benefits.
In the last two recessions, both outperformed the stock market. Land has historically shown appreciation in value. Combine that trend with COVID-19, historically low interest rates, tight supply and civil unrest, and it’s easy to understand why land is a highly sought-after, safe haven investment option.
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