The Midwest United States state of Missouri has a long tradition of agriculture, making it an attractive destination for farmers and investors seeking agricultural land. Yet the risks and carrying costs associated with rural property also discourage some buyers from purchasing land for short-term real estate flips. As such, is buying Missouri land a good investment?
The state’s centralized location within America’s heartland, business incentives and relatively affordable land prices make the “Show Me State” an intriguing investment choice. However, challenges such as unpredictability in land values and the expense of reselling rural property quickly dampen the value of some property purchases.
Rural land in the state’s southeastern counties and in isolated areas near Kansas City can command high per-acre pricing. These properties may be suitable for agricultural development or a variety of recreational and residential purposes, depending on their terrain, availability of water and proximity to population centers and transportation corridors. However, the cost of clearing timber and delivering electricity or septic systems to undeveloped parcels can quickly erode any upfront savings on a purchase price.
While Missouri’s economy is largely driven by agriculture, the state also maintains a strong presence in manufacturing, healthcare and technology. Major companies such as Anheuser-Busch, H&R Block and O’Reilly Auto Parts operate headquarters in the state, and high-profile schools attract students interested in pursuing higher education. Additionally, popular restaurants & breweries, entertainment venues and outdoor recreation draw tourists, families and young professionals to the state.
Investors looking for commercial/industrial land in metropolitan areas of the state are likely to find better prices than in remote or rural counties. As a result, these urban locations may be less prone to cyclical volatility than more isolated farmland.
Unlike the state’s residential real estate market, average per-acre prices of agricultural land in Missouri are not formally reported by any government agency. As such, buyers should thoroughly investigate local market conditions and consider consulting a professional Missouri land broker for current sales data.
Although the state’s agriculture is thriving, economic factors have made some farmers downsize their operations and scale back their investments in recent years. This has led to a steep drop in per-acre cropland and pastureland prices from their 2013 peaks. However, despite this, many investors still believe that investing in agribusiness-related land is a solid strategy.
Buying and is Missouri land a good investment presents a unique opportunity to diversify your portfolio with a tangible asset. With its diverse landscapes encompassing plains, mountains and lakes, the state provides a variety of recreational activities that can boost your income potential. Whether you’re interested in hunting and fishing, enjoying scenic vistas or exploring the state’s rich history, investing in Missouri land is an exciting way to expand your lifestyle while growing your wealth. Contact a professional MO land broker for more information on purchasing and financing your land plot. They can help you weigh the key pros and cons of investing in Missouri land. They can also connect you with a real estate agent and lenders familiar with the state’s marketplace.