Now that we think about it, we probably shouldn’t have promised you the wealth of Solomon because a lot of that comes from your devotion to building the right relationship with God. Where we come in is to educate you on the profit possibilities inherent when you raise your gaze to see past the rigged stock market. A term we like to use, coined by Solomon Success founder, Jason Hartman, is Packaged Commodity Investing®.
Packaged Commodity Investing® is the best way we’ve heard to express the concept that when you invest in land with a structure on it, you’re really investing in the commodity market and prices rise and fall based on forces associated with the particular industry. A commodity is a natural resource like gold, silver, lumber, oil and the accompanying products created from these basic building blocks – literally building blocks – because the house you’re living in is a perfect example of Packaged Commodity Investing®.
Consider the materials that go into building your house: wood, concrete, copper, rock, various petroleum based products. When you buy a house, you are actually purchasing commodities that have been “packaged” for sale. This bundling process, which we call construction, is a “value added” benefit. Hopefully, this short description illuminates the fact that buying a house is akin to buying commodities. Having said that, we’d like to say this. The price of commodities is about to skyrocket, courtesy of a growing middle class in China and India who are ready to live their country’s version of the American Dream, and who blames them?
As the standard of living rises for the Indian and Chinese populations, they are going to be looking to buy or build houses in a huge way, and you better believe there are a lot of them out there – enough to place a growing upward pressure on the construction industry’s ability to keep pace with demand, which will also be felt across the commodity market. And we all know what happens when demand increases, right? Price goes up.
So then the choice becomes owning rental property right now, in the early stages of price increase, or missing the bandwagon entirely and wishing you had paid attention to Solomon Success when we first proclaimed news of this amazing investment opportunity.
The Solomon Success Team
Flickr / Concrete Forms