Although investors’ primary purpose typically involves land development, not all property can realistically provide sufficient value through mining. In such cases, land not mined for limestone or other mineral commodities may be acquired and held in hopes of profiting from appreciation over time. Investors may later develop holdings or sell them at significant profit.
When Buy and Hold Is a Prudent Approach
From environmental regulations to physical obstructions, a variety of circumstances may make mining or other development options impossible or financially irresponsible. If undeveloped land lacks attributes indicative of conservation potential, the next best strategy may be buy and hold, in which the investor allows the parcel to appreciate.
Depending on the nature of the property, future zoning changes or technological developments could make mining a more feasible option down the road. In such cases, land holding could buy investors time for further research, prior to development. Otherwise, appreciation generally ensures ample ROI for investors. Land banking allows these investors to direct their cash towards a tangible asset—and one that could potentially be developed at a later date for further income.
Monteagle’s Role in Land Holdings
Through strict due diligence, Monteagle determines development viability, and whether property can realistically garner value through mining. Research may point to buy and hold as a more profitable strategy, especially for investors ill-prepared for the development process. Monteagle facilitates these transactions, ensuring that investors only commit to land likely to appreciate. Although brief periods of volatility or even decline may ensue, the long-term goal of Monteagle’s buy and hold strategy is to eliminate the uncertainty of the short-term market and enjoy a strong rate of return over time.
Different property parcels and circumstances call for different approaches, but buy and hold is a viable option for those seeking long-term growth and stability. Monteagle can help you leverage holdings to ensure maximum return on investment.