What is safer, investing in a piece of land or a mutual fund? I know there are a lot of variables in both but generally what do you think has the least risk?

too broad a question - there are aggressive mutual funds and conservative. Land depends on where it is located and what kind of deal you get at purchase. Land is not liquid - so if you need the money quickly you cannot count on it. MF's are liquid.

Typically MF's will ebb and flow from year to year - real estate is designed, in most situations, for a long term hold.

Do not do either unless you have a solid cash emergency fund which should be at least equal to one half to one full year of your annual household income.

My advice is don't base a financial decision from a forum on the internet - so see a professional to advise you

My grandfather thought real estate was the only investment to have. He bought some great tracts that my family is still reaping rewards off of.

We're also paying taxes on a couple of dog lots that we've had for 50+ years with no value visible in the foreseeable future.

The point is, you have to research the hell out of it before you put your money on the table.

Thanks for the advice. I'm a younger guy and haven't owned any land myself. I've had a good chunk invested in a conservative mutual fund for the past few years and it hasn't really performed well. It's not my life savings by any means and it's not something I need to be liquid. The price of Land is anywhere form 2-4k per acre where I live (between Dallas and okc). The type of land that I am thinking about is a solid hunting property with 60-100 acres with at least 50% timber and some form of water.

always stay diversified.
I like having both, but if I had to pick one, Mutual Funds is my first choice.

With that being said, Over the last 10 years my property has done much better. (but I only buy property if its a good deal) I personally have only purchased land with the extra money I have to invest after 401K maxed out.

The property I have bought includes commercial (I use it for my business) and Ranch land (I wanted it for pleasure)
So I have not bought property for pure investment reasons.
My mutual funds have stayed flat , maybe gone up slightly since 2008 and my property has in some cases doubled or tripled in the same time frame.
I had a small property near the city on the highway that had a little hunting and a nice fishing hole on it.
since it was off the highway, I sold it for triple the purchase price a few years later. I really didn't care if I sold it or not. My hunting ranch now is much more remote, has great hunting, but I do not expect it to raise in value very quickly. I enjoy it, so this is not really an Investment property.

If you have the extra money, like to hunt, and want property of your own, I say go for it. I personally would not use property as my retirement fund.

Might be near impossible nowadays, but try for 51% or more mineral rights.

over the long term for someone young like you, IMO your "safest" investment is saving a percentage (preferably try to get to 15%) of your income each and every year and leaving it alone to grow. Systematic savings in a solid, low cost mutual fund over 20-30 years is a no brainer. I also bought some land along the way but never touched my long term savings money to do so. Those who start saving at a young age for retirement will come out way ahead - compounding of money is the most powerful financial strategy there is.

This is good advice. Liquidity should always be considered until you have most of what you own paid for. Things will change over your life span that aren't always for the better like losing your job, business, disease or accidents that take away your ability to work. If your young and investing conservatively in mutual funds you would get a better long term return by well researched property purchases. You must take more risk with growth type of mutual funds if you want to see growth from them. Buying more shares when the market is in a down cycle will help as well. If you just can't stomach the risk, real estate would be a better choice. If you go this direction it is imperative to have 6 months or more worth of savings for the reasons already mentioned because you don't want to be in a position of having no choice but to sell because you need liquidity.

Buying land....hands down !


( I have 217 acres for sale )

LOL so if it was so great an investment why are you selling it?

Best bet.....do both for long term.

it's time to realize capital gain

Brilliant

Why 51% ???

Land. You can hunt on it . They aren't making any more of it and it's disappearing

Controlling interest....

Either with a mutual fund or land, you have to be somewhat smart in your purchase decision, LOL. You also have to be smart in your sales decision.

I purchased my hunting land for roughly $2011 an acre in 2004 and it more than doubled in price to $4500 within 4 years. Here in 2016, comparable land can be had for about $3200, though a lot of folks are still asking for $4000.

Land around my lease in Montague is listed around $3,200 an acre and up. Several 160 to 320 acre parcels have been for sale for 6 years now. At the same price if that tells you anything. Location and what the land offers makes a big difference. Red dirt, mesquite and cactus isn't too appealing so not very liquid. I would never invest in land around my lease personally. The only landowner around us that actually lives on and hunts his own land high fenced it due to all the pressure around. Other areas are way more appealing so much better investments. Not everyone wins though but if I had the cash I would own a place.

you can have controlling interest with out owning the majority percentage..... and just because you receive majority interest doesn't automatically give you control.....

There will be no more land made. If you invest in good hunting property, it is far safer than a mutual fund. Land I bought in 1999 has sextupled in value.

Location, location, location. What county did you buy in and how many acres?

while i realize this is a Hunting Forum... Would have to disagree... For $48.00 a year can hunt th ousands of acres here in still a Proud Supporter of WMA ... The one twas just down the road has a great program... Tip me hat have seen the hogs dwindle down, & seen some very impressive deer over the years... As pappy says: hunters manage the pray, the eyes & ears of the woods ...

Val Verde, 150 acres.

Colt, You forgot to ANSWER the question posed by the O.P. Which is safer...your reply is off the wall.

Good point... i invested in places i worked... Lost both times... Land might be safest, least ya have a place ta stand your ground, 150 acres, could fish hunt, garden, if managed right.. It went from buck only ta 4deer were i was living...