By MoneyMorning.com.au
Finally. We’ve found it.
The best property investment in the world. And the best time for you to jump into it could be now…
From the Herald Sun…
‘MELBOURNE homes have lost $200 in value every day for the past nine months.’
That’s $53,800 wiped off the price of an average Melbourne home in 269 days.
According to RP Data…
More than two-thirds of Melbourne’s homes having either lost value or stayed flat in price over the past three months, with just 78 of the 272 reported suburbs growing in value over that time…
And in a 15 km by 12 km square, the price of houses in 10 suburbs fell. Even though these suburbs are less than 16 km from the Melbourne CBD…
That’s right, dear reader. Property prices in 194 Melbourne suburbs have ‘softened’… And not just out in the sticks. We’re talking prime real estate close to public transport, shops, schools and the CBD…
The Reserve Bank of Australia has given you an ‘early Christmas gift’ and cut rates. The Big 4 banks have now passed those cuts on to borrowers. There are still home-buyer grants and bonuses to snap up – if you’re quick.
But you know what? Investing in a house in one of these 194 ‘depressed’ Melbourne suburbs doesn’t even come close to the best property investment in the world.
Take a look at this. This is the compounded gain you could have made if you invested $500,000 in the world’s best property investment 20 years ago…
And it still seems destined to head nor’ward today.
The chart above (from ncreif.org): ‘is a quarterly time series composite return measure of investment performance of a large pool of individual agricultural properties acquired in the private market for investment purposes only.’
In English? The return is on a bundle of farms bought purely as an investment. That’s right. The world’s best property investment is farmland.
How can that be?
Rising food demand pushes up food prices. Rising food prices pushes up the value of farmland. It just goes to show you, once again, the value of holding real assets underpinned by sound supply and demand fundamentals.
The United Nations predicts the world population will keep growing at around 80 million people a year. The International Monetary Fund says: ‘… the world faces a prolonged period of high food prices.’ Add two and two together and things should keep looking good for farmland.
But how do you invest in farmland? If you’ve got a spare $2 million you could buy it outright – but there’s no guarantees you’d make those kinds of gains. Or you could buy shares in an agricultural property trust like the US-based NCREIF… if you can track one down on the ASX.
But the answer is you don’t have to.
What you’ve really identified here is an opportunity to invest to make gains from the growing demand for food… By investing in a hard asset that has real value.
Diggers & Drillers Dr Alex Cowie has identified one rare resource that is a VITAL component of the multi-billion-dollar global agricultural industry. Farmers the world over rely on it to nourish their crops and boost production in every hectare of land they till.
A share in this commodity is just the type of ‘property’ you should think about investing in. But you can’t trade it on the open markets.
To find out how you can trade it… and how it can help you share in the gains of the World’s Greatest Property Investment, click here now.
Aaron Tyrrell
Editor, Money Morning
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From the Archives…
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2011-12-06 – Dr. Alex Cowie
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2011-12-05 – Kris Sayce
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