hen you purchase
a property, there
are two compo-
nent parts. There
is the improvement and there is
the land. It is important to un-
derstand what influences the cost
of improvement (the structure)
sitting on the land. Environmentalism
and building restrictions certainly pay
a role.
Jason Hartman’s
increments. We’re looking at a lifetime here. The big trends are
bigger then “copper went up this week or down this week” and
they’re more important. The big trend is massive consumption and
an ever growing world population that is moving toward prosperity.
And a more prosperous life means an increase in consumption.
So, though perhaps wealth has decreased in the short term, they’re
more prosperous than they were 10 years ago. When we look from
a longer perspective, the global economy is booming. Raw materi-
als cost.
In 2004, the government said that the rate of inflation was 3.3
percent. That same year, iron and steel prices went up 34 percent,
roughly 10 times the official inflation number. Lumber was up
17 percent, Wallboard 20 percent. Labor and energy costs have
fluctuated and oil will go up — you can’t stop population-induced
consumption.
If you can get a copy of a tax bill, take a look at the tax assessor’s
divided up cost and value of the land and the value of the improve-
ments or buildings that sit on the land—there’s money in improve-
ment. Put your money in the sticks, the bricks, the bank. v
There’s an old joke that asks what
you call a developer. (Someone
who wants to build a house in
the woods or at the beach.) What
do you call an environmentalist?
(Someone who already has a house
in the woods or at the beach.) The
environmental movement increases
the value of land because it makes
it more difficult for others to build
after you, and your land is already
entitled and improved.
Jason Hartman has been involved in several
thousand real estate transactions and has owned
income properties in 11 states and 17 cities.
His company, Platinum Properties Investor
Network, Inc. helps people achieve The Ameri-
can Dream of financial freedom by purchasing
income property in prudent markets nationwide.
Jason’s Complete Solution for Real Estate In-
vestors™ is a comprehensive system providing
real estate investors with education, research,
resources and technology to deal with all areas
of their income property investment needs.
Contact Jason at www.JasonHartman.com or
714-820-4200.
You might be hearing about things
on the news that will lead you to
believe that your best investment
is not in the sticks and bricks of
a house. They’re wrong — it’s
important to understand that com-
modities ebb and flow in the short
term. Life isn’t lived in six-month
Realty411Guide.com
PAGE 13 • 2014
reWEALTHmag.com