Real Estate is one of the most discussed asset classes (if you can call it that), while not the least understood, those in the business promote certain aspects of real estate through marketing in order to sell their developments, whether they be industrial, commercial, or residential.
Inside any crisis portfolio should be some land, land with low cost to maintain (such as bare land with low taxes) in a rural area, somewhere off the grid. Places like this exist nearly in every part of the world. Factors to be considered:
- Environment (weather)
- Survivability
- Neighbors – Who are they, what do they do, how may they react in a crisis.
- Politics – For example in Panama or Mexico, what is the probability that your property will be annexed by the local government, or raided by Gauchos?
The motto of most prepping, both in reality and financial, is that it’s better to have it and not need it, rather than to need it and not have it. If anything, bare land in a non-polluted area will likely at least maintain it’s value, if not increase, but more importantly, may provide a safe haven for yourself or distressed family members. This is a growing trend, as seen in this local news story:
(WBIR – Fentress County) If you’re searching for somewhere to make it through any number of doomsday scenarios, some prominent members of the survivalist “prepper” movement say look no further than right here in East Tennessee.
That sentiment has preppers flocking to Tennessee’s Cumberland Plateau for property. Country Places realty says it has received so many calls from preppers, the company is now specifically marketing much of its Plateau property to those who are preparing for the worst.
“It’s very noticeable how many calls we get and how many people we’re showing land on a daily basis,” said Don Busby, general manager of Country Places. “A few years ago, at that time I never heard of a ‘prepper’ or the ‘doomsday movement.’ But over the last year there is a much greater intensity. I get the calls daily from people all over the United States who are looking for land. Usually, a minute or two into the call it is pretty obvious that they have a prepper mentality. They’ve got to have a place that is safe where they can grow food, raise animals, and have things stockpiled.”
As for what the preppers are afraid of, Busby says the concerns span a wide variety of apocalyptic topics.
“Some people are pretty cautious when they call, but others will come right out and tell you their fears. They’ll tell you they are worried about an economic collapse or they’re worried about a time when there’s no electricity or not being able to get food. You have people who are afraid of nuclear attacks. Others are concerned about ENPs, the devices that destroy electricity. A lot of people say they’re worried if the government collapses, they don’t want to be in the city because that’s where there will be a shortage of food and you’ll have angry mobs,” said Busby.
Why Rural?
Any prepper knows the first 3 rules of any crisis:
1. Leave the cities
2. Leave the cities
3. Leave the cities
But also, rural areas are usually less developed, have less building codes, are more secure, and unless you stumble upon a specifically polluted area (be careful here they are good at hiding) it’s likely less toxic. During any crisis people from the cities may venture out to rural areas but not far. Governments will be desperate to police the cities. The areas will mostly be forgotten about.
The problem with real-estate in cities and highly developed areas is many, almost too many to name. But most important from a financial perspective, the cost to maintain these properties will increase while their net return will decrease.
Overall, spending a small amount of money (they are relatively inexpensive) is a wise move for any portfolio size.
Prepper property resources
For deep insights on properties, please please Contact GIH.
Example:
1.9 acres waterfront, $14,000 or best offer.
