Let the Land do the Work!

Land ownership has always been a part of the "American Dream."  On farms across the country, the hope was to work the land and prosper.  Now, working the land may mean developing it or renting it or simply holding it, but the popularity of real estate as an investment asset remains high.  land and its improvements account for 30-40% of the average individual's net worth.

Real Estate as an Investment Asset

Like other assets, people usually invest in real estate expecting growth, income, or some combination of the two.  Land can be an outstanding growth investment, steadily increasing in value over time. In fact, it may be the most highly appreciated asset that many people own.  Unfortunately, that appreciation can create problems if the owner decided to sell the land or give it to a family members.

Land can be an excellent income investment, too.  Sometimes, however, income expectations from rental or farm properties can be frustrated by the costs associated with ownership (such as taxes, insurance, and maintenance).

Unique Benefits from Charitable Giving

For some, an investment in real estate may have outlived its usefulness.  A gift to the Boy Scouts might provide relief from management burdens and a welcome tax deduction for the property's fair market value.  In addition, the gift can usually be structured to create an income stream for the donor or members of his/her family.