Fifth Avenue in New York, Fisher Island in Miami and Rodeo Drive in Beverly Hills, among others, are well known as safe havens for U.S. urban real estate investments. However, many savvy investors are seeking fine rural real estate properties ranging from recreational property with equestrian, fishing, hunting, skiing and other outdoor amenities to income-producing agricultural and timber real estate investments.
One can always build a newer, more luxurious high rise, but fine rural real estate is finite. The U.S. is home to hundreds of exceptional rural real estate properties for sale and American Farm + Ranch (AFR) is the premier source for fine rural real estate.
AFR Member Brokers Joseph Burns of Lone Eagle Land Brokerage and Billy Long of Ranch Marketing Associates, both specializing in Colorado estates and ranches, reported that domestic and foreign investor interest in Rocky Mountain properties remains high with strong demand for fairly priced trophy properties.
Rusty Lowe, Member Broker with Century 21 Harvey Properties, said, “In many areas, back-to-back lower-than-average yields with suppressed commodity prices on the hoof and in the bin have forced producers to divest quality units. Investors have favorable conditions to enter the market.”
Analysts anticipate the U.S. rural real market will remain a strong attraction to foreign investment in 2017. The U.S. Federal Reserve modestly increased interest rates in December and signaled more small rate increases in 2017, a sign of relatively stable U.S. growth. “Economic growth has picked up since the middle of the year,” said Federal Reserve Chair Janet Yellen. “We expect the economy will continue to perform well.” Increasing interest rates make the rotation from stocks and bonds to real estate an attractive alternative.
So, will the new U.S. administration implement dramatic changes? President Trump pledged to implement sweeping changes in government, taxes, infrastructure investment and the regulatory environment; however, it remains to be seen how many and how soon any changes will be implemented. Regardless, the economy is anticipated to remain strong and U.S. asset investments – real estate in particular – should become more attractive and valuable to global investors. Lending rates and fixed-income rates of return remain very low by historical standards, inducing continued leveraged purchases of real estate assets. Accelerated foreign investment in U.S. real estate markets can be expected as the U.S. becomes an even greater haven for investors.
American Farm + Ranch is a team of highly successful land, farm, estate and ranch specialists whose sales rank in the Top 10 in the U.S. Our Member Brokers have spent their lives and careers in and around rural real estate and their knowledge and experience of the market is only surpassed by stellar reputations of trust and integrity. In addition to helping buyers identify and negotiate transactions, our members offer comprehensive property management services to ensure absentee owners achieve their objectives. EG