Many financial gurus say that you must never put your eggs in just one basket, so if something fails, you don’t lose your entire nest egg. It does make a lot of sense to diversify your portfolio, which is why many people choose a variety of investment instruments from savings, cash deposits, treasury bonds, mutual funds, stocks, UITFs, gold, and real estate.
It is human nature to want passive income. After all, you don’t want to be working hard all your life. You want to make your money work for you, so you can enjoy your life to the fullest. Thus, you come up with various strategies to grow your wealth, with the ultimate goal of financial freedom.
Apart from the usual traditional investment schemes that focus on the future assets of living breathing humans, you must be informed that there is now such a thing called “death investments”. Before you balk at this suggestion because it sounds a bit creepy, you cannot discount what this type of investment can do for you and your pocketbook.
Unconventional Investment in Cemetery Plots
Many people don’t usually consider the concept of investing in cemetery plots because it is honestly not an attractive choice. In general, society doesn’t want to discuss something as morbid as people’s mortality. Death is hardly talked about because it is an emotional topic that brings an overwhelming sense of sadness and pain.
But this very grave matter (pun intended) of investing in cemetery plots is something you should consider because no matter how unnerving it may be, these small pieces of property are still considered a form of real estate. As you know, real estate investment is a solid, sound, and safe strategy that has loads of potential to grow your money.
Buying your cemetery plot now means you are investing in a piece of property that can save you a lot of cash and can earn you some money down the line. But as with any investment scheme, for this death investment to work, you have to make sure you research what you’re getting into. It is your responsibility to know where you’re putting your hard-earned money on.
The Benefits of Investing Outside the Norm
One perk of choosing to invest in cemetery or burial plots is that they are cheaper. Compared to other kinds of real estate investments like houses, commercial buildings, REITS, or rental properties, cemetery plots are very much smaller so the price per square foot is also not exorbitant.
Furthermore, because they are smaller, taxes are also comparably priced. It also doesn’t take much to maintain and secure a cemetery plot. Usually, the cemetery where the plot is located has a managing office staffed with people who are in charge of these little details. They cut the grass and supervise the property on your behalf.
You also don’t have to worry about other people using or “stealing” your property. Remember, burials need permits before the deceased can be laid six feet below ground. It also requires a lot of preparation, so if someone were to make an unintentional mistake and use your cemetery plot, you will be alerted. If a mistake unfortunately happens, you can rectify it easily.
Most importantly, just like any other real estate, the price of these tiny plots increases as the days go by. The plot you bought for a rock bottom price years ago can be worth a fortune today. Market research notes that cemetery plots grow at a rate of 8% per annum. That’s certainly a lot more than the interest rate of banks on savings accounts! This figure also surpasses the inflation rate proving that it is indeed a sound investment choice.
The Possible Pitfalls of Grave Investing
Investing your money on a grave site or a burial plot does have its pitfalls. In these modern times, cremation is becoming more popular with people shifting away from traditional burials. Columbariums now exist to hold urns, which some say are more convenient and a lot cheaper.
The future can also be unforeseen and have an impact on your purchased burial plots. You can move away and end up very far from your investments in a cemetery. Besides, pre-bought burial plots may not be adequate to hold future family members like a spouse and all your children. These are the kinds of eventualities that you must factor in your decision-making when you’re buying cemetery and funeral investments.
Planning Ahead is a Sound Choice
In spite of a few caveats, investing in cemetery plots is still a wise choice. You just have to make sure that you pick a prime location. Certainly, the view and ambiance of the cemetery won’t be appreciated by the deceased, but those who are still alive factor them into the picture. You’ll want well-manicured lawns, trees, fountains, and the like.
Once you buy a cemetery plot, you’ll have the option to keep it, so you’ll have something ready in case anything untoward happens to you or your loved one. It is one less tough decision to put on your future heirs. If finances are tight for those left behind, this kind of planning removes the burden of cost. Buying cemetery plots early gives your loved ones the freedom from complexity should you pass on.
Moreover, you can also choose to sell these plots eventually after a couple of years. By then, the returns on your investment will be of great value because the amount of this small plot of land would have drastically risen.
Bottom Line
Investing in a cemetery plot is very promising because it is a type of real estate that increases in value. It is also something that everyone will need because, as blunt as it may sound, death is inevitable. It will come eventually, but hopefully, not too soon.
However, the sooner everyone accepts that the better you can plan for the future. It would be easier to leave the earthly world and say goodbye to your loved ones if you are prepared and if you have a lot of investments that can help tide them over until they get back their footing after you have passed on.