With many things in the financial sector and federal government looking uncertain, one thing remains true: “Real estate is and always will be a quality long term investment”. Many ranch brokerage companies have reported record sales for 2012, supporting what appears to be a strengthening real estate market and an inviting time to invest. Interest rates are at all-time lows, and memories of the stock market’s crash are still at the forefront of everyone’s minds, causing many buyer/investors to take advantage of a great buying opportunity, choosing to invest in farm and ranch real estate.
In a recent article in the Billings Gazette, friend and managing broker Greg Fay is cited summarizing the market: “In looking ahead to this year’s market, Fay is cautiously optimistic.” He doesn’t entirely trust the market, although the economy seems more stable. He sees ranch prices as bottomed out, but not yet appreciably rising, making it still a good time to buy. There also could be more ranches for sale if there’s a sense that the market value is increasing. Greg is also quoted as saying, “There are excellent opportunities everywhere right now.”
I personally could not agree more. Along with one of my closest friends, a bank owner and agricultural lender, we are both astounded at how low interest rates are and how long they have remained low. It does not encourage investors to put money into the banks, but the inverse is an excellent borrowing environment. This coupled with a strong agriculture commodities market is bringing many buyers into the ranch market place and encouraging “conservative” farmers and ranchers to expand their operations. There appears to be some longevity to the strong agriculture market and real estate values have stabilized and show glimpses of increasing in value. Both of these factors make it a good time to invest in ranch real estate and enjoy some security in a quality long term investment.
Ranch Broker Associate
Mike Fraley and Fay Ranches represent the finest farms, ranches, and sporting properties for sale in the American West. Contact Us today to learn more, and start living the life you deserve.