Market Perspective

The Race Continues: Economic Growth vs. An Economic Tantrum-Week 15

Posted by on Sep 14, 2017 in Ned Massie, Perspective | 0 comments

Land Market Summary By Segment: Residential Land – Is the Market Building a Bubble #2? There are market segments with an over-abundance of lots and almost no demand for the ones that exist. But in the most desirable and most active market segments, the reverse is true. This type of self-feeding frenzy usually occurs prior to the creation of a “Bubble”. In the most active market segments, lot prices are now reaching “nosebleed” levels, another sign that we see when we are approaching a “Bubble”. The question is how rising interest rates will impact the new home market to get the supply and demand back in some sort of balance. In these uncertain times, it is critical to remember that land is the source of all wealth. Every product that we humans consume originates with land. Not all tracts of land are equal in quality and portfolio management requires every investor to hold some cash for liquidity. But historically, long term the best investment is...

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The Race Continues: Economic Growth vs. An Economic Tantrum-Week 14

Posted by on Sep 7, 2017 in Ned Massie, Perspective | 0 comments

Land Market Summary by Segment: Residential Land – Is The Market Building a Bubble? In the land market deal flow that we see, the supply of residential lots in the most active market segments is severely constrained. The forces constraining them include the three years it takes to get a tract of land rezoned and approved for residential development plus another year to actually build the infrastructure. As a result, land developers have to look four years in the future to forecast what they can afford to pay today for a tract of land if they want to create a residential community. Currently, home builders are extremely concerned about lot availability. Therefore they are bulking up their lot purchases. That activity further reduces the supply of available residential lots in the most active market segments. In these uncertain times, it is critical to remember that land is the source of all wealth. Every product that we humans consume originates with land. Not all tracts of land are equal in quality and portfolio management requires every investor to hold some cash for liquidity. But historically, long term the best investment is...

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The Race Continues: Economic Growth vs. An Economic Tantrum-Week 13

Posted by on Aug 29, 2017 in Ned Massie, Perspective | 0 comments

Factors That Make Timberland An Attractive Asset: 8. Active Management Maximizes Return: The key to a great rate of return on a timberland investment is (1) it must be the right property in the right location at the right price and (2) it must be managed properly. If mistakes are made in any of these areas, returns may be reduced. The selection of the right property and proper timber management are critical. The Land Brokers and Foresters at Grant Massie Land Company can assist and advise you in this all important step of asset selection. We have over 40 years of experience working with timberland tracts and advising clients, whether they are buying or selling. Give us a call. In these uncertain times, it is critical to remember that land is the source of all wealth. Every product that we humans consume originates with land. Not all tracts of land are equal in quality and portfolio management requires every investor to hold some cash for liquidity. But historically, long term the best investment is...

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The Race Continues: Economic Growth vs. An Economic Tantrum-Week 12

Posted by on Aug 16, 2017 in Ned Massie, Perspective | 0 comments

Factors that Make Timberland an Attractive Asset: 8.  Inflation: In these uncertain economic times, a timberland investment is a great hedge against inflation. Historically, timber values have increased at a rate higher than the rate of inflation. Adding the annual growth of the trees and the combined rate of return on a timberland investment can be powerful. In these uncertain times, it is critical to remember that land is the source of all wealth. Every product that we humans consume originates with land. Not all tracts of land are equal in quality and portfolio management requires every investor to hold some cash for liquidity. But historically, long term the best investment is...

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The Race Continues: Economic Growth vs. An Economic Tantrum – Week 11

Posted by on Aug 10, 2017 in Ned Massie, Perspective | 0 comments

Factors That Make Timberland An Attractive Asset: 6. Timberland Helps the Environment: A vigorous, growing stand of timber removes carbon dioxide from the air and produces oxygen. Also, with newer technology the biomass from forests could soon be used on a wider scale as an alternate, cleaner source of energy. In these uncertain times, it is critical to remember that land is the source of all wealth. Every product that we humans consume originates with land. Not all tracts of land are equal in quality and portfolio management requires every investor to hold some cash for liquidity. But historically, long term the best investment is land.  ...

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The Race Continues: Economic Growth vs. An Economic Tantrum – Week 10

Posted by on Aug 3, 2017 in Ned Massie, Perspective | 0 comments

Factors that Make Timberland an Attractive Asset: 5. Timberland is a Fairly Stable Asset: Timberland does not have the wild “ups and downs” of the stock market. That is why pension funds and insurance companies like timberland investments. Timberland is more like high grade bonds as a long-term investment over ten years or more. Both timberland and timberland investments have good up-side potential if you catch the markets right. Over the long haul, the return can be quite attractive because the trees keep growing if they are managed properly. In many cases a single property has funded college educations or retirement. In these uncertain times, it is critical to remember that land is the source of all wealth. Every product that we humans consume originates with land. Not all tracts of land are equal in quality and portfolio management requires every investor to hold some cash for liquidity. But historically, long term the best investment is...

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