Oil, Agriculture and Real Estate

Oil, Agriculture and Real Estate
Land, like any other income producing property, is priced according to the income it produces. As the high cost of oil and available tax incentives induce normally reasonable people to do unreasonable things like burning up their food to power their SUVs, the price of agricultural commodities are skyrocketing. This increases farmer’s profits and thus increases the value of the land.
How long will it be before the governments in countries like Venezuela see foreigners taking away their “national heritage” in the form of corn, soybeans and sugar cane. In most of the civilized world, property rights are inviolable. Even in nominally communist countries like China, property rights are being strengthened as the economy grows. Look at the economies of the countries where property rights are protected. Look at Venezuela and Zimbabwe.
Lula, in Brazil, is a socialist; but he realized that in order to boost the well-being of the poorer parts of his society, he would have to boost the economy. He has done this by protecting and enhancing property rights and guarding the security of investments in the country.


David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com