Your funeral will be one of the most precious events in your life. Today, the average funeral cost is between $7,000 and $12,000. This number covers only the basics. If you decide on more expensive options for a casket/urn, flowers, catering, memorial services, or make multiple sightings, they could cost thousands more. Therefore, many people buy plots of land before they die to keep the rates low. However, some people invest in burial plots as an alternative asset. If you are wondering if it will make a good addition to your portfolio, here’s what you need to know about this unusual type of investment.
Why do people invest in burial plots?
1. It eases the financial burden on your family.
Although it may seem obvious, it’s a valid question. First and foremost, people choose to purchase burial plots to help relieve the stress of their death. It also eases the financial burden it places on your family. Planning ahead allows you to give your family one ultimate gift.
I recently lost my father, and I can tell you that making important financial decisions was the last thing I wanted to do while I was grieving. So, if you are looking to invest in burial plots, remember that they will also provide significant emotional and financial relief to your loved ones upon passing. Instead of wasting energy on these decisions, they will be able to better handle their grief and support each other.
2. Saving during your lifetime makes it accessible to everyone.
If you buy it now, it gives you time to pay off the burial plots while you’re still around. Spreading the cost across your life makes it easy for you to afford it. You can contribute to an allowance account and use compound interest to help cover final costs. While your time on Earth may be limited, you should use it to your advantage.
3. You will have more to leave for your loved ones.
Savings now also means the estate will have fewer expenses. This means more wealth that you can leave to benefactors. Instead of paying for funeral and burial expenses, the money can be put to better use. Or it can be passed on as a generational wealth to help support your family in the future.
4. It gives you the final say on your funeral arrangements.
Moreover, investing in burial plots also allows you to dictate the details of your final arrangements. You can choose exactly how and where you want to rest.
While some think it’s a bad comparison, buying burial plots is like buying a home. You can search for a specific location or choose the exact location on the ground. You can be sure to choose a cemetery that maintains the landscape so that it is attractive and easy for people to find. You also have the option of purchasing family plots and arranging enough space for all your loved ones to bury them near you.
5. Burial plots have a high discretionary value.
However, the most controversial reason for investing in burial plots is their value as an asset. Due to several factors, the value of land plots is on the rise. So, buying it now can yield a high return on your initial investment.
What makes a burial plot valuable?
When it comes to real estate, location dictates value. Desirable sites are more expensive. There will be a huge difference in prices whether you’re looking for historic cemeteries, proximity to celebrities, scenic views, access to major roads, or burials at the shrine. And don’t forget that people are willing to pay more to get what they want.
Death is a fact of life. Therefore, plots for burial will always be needed. An estimated two million Americans die each year, and that number is likely to increase as the elderly population ages en masse. However, many cemeteries became overcrowded, which increased the demand for plots of land.
With such a high demand for burial plots, they present a promising opportunity. Plots that sold for $1,500 are now selling for over $4,000. Therefore, there is a good chance that you will see similar returns on your investment if you buy plots of land now. Currently empty tombs may become a hot commodity 25 years from now, especially with increased demand.
Is it still worth investing in burial plots?
The laws of supply and demand indicate that burial plots are a relatively low-risk investment. However, as with all investments, you need to do your due diligence and assess whether this is the right move. If you are interested in investing in burial plots, contacting your local cemetery or a quick search through Craigslist will give you a better picture of the value of the land in your area. It will also help you identify the most valuable sites.
Despite the negative connotations associated with death and burial plots, you cannot deny their value as an asset. Real estate is valuable, and historical data indicates that the demand will only increase in the coming years. Spaces that once sold for a few hundred dollars are now selling for several thousand. You can find many stories in USA Today and the Wall Street Journal that tell the story of people who sold their burial plots for huge profits.
Therefore, buying the desired plots of land that you will appreciate can earn you a huge profit. Although there are absolutely no guarantees, many investors seem to agree that it is still worth putting your money into burial plots. For those who are looking to invest in alternative assets, buying cheap plots of land can bring you big gains in the coming years.
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Jenny Smedra is a passionate world traveler, ESL teacher, former archaeologist, and freelance writer. Choosing Life Abroad reinforced her commitment to finding ways to bring people together across language and cultural barriers. While most of her time is devoted to either working with children, she also enjoys good friends, good food, and new adventures.