Investing in Cemeteries

Cemetery real estate investing has been likened to housing real estate investing in that investors assume that their prices will continually appreciate in time. This is true for the most part. The law of supply and demand guarantees that cemetery plots will increase in value because there are not many cemeteries being built and people will continue to die and need to be buried in some way or another.

Cemetery Plots

One of the big factors disrupting the demand for cemetery plots is the increasing popularity of alternative ways to be buried. Number one on the list is Cremation which is much cheaper, takes up less space and can be portable. Cremation services can be as cheap as a quarter of the price of a regular burial.

Cremation plots are also cheaper since cremated ashes need only little space to be stored. Cremated ashes can be portable. They can be stored in the house of the deceased person’s relative or in any place the law permits. They can also be scattered into nature as many people do. There are people who spread the cremated ashes in the ocean, jungle, space and so on as per the wishes of the deceased.

However the fact remains that many people would still be burying their dead in cemetery plots according to their culture and this would still persist for a long time to come. This is true especially for rich people who want to be buried together. There are even rich people who build mansion sized mausoleums complete with living amenities just to be near to their dead loved ones.

My experience is that cemeteries located in densely populated areas such as major cities will have their cemetery plots greatly appreciate in value guaranteed. The saying in real estate investment that Location is Important is also true for cemetery plots. Even the location of a cemetery plot within a cemetery will determine its price especially if the plot is very accessible to visitors and in a picturesque place.

Although cemetery plots appreciate in value and the cemetery might be full it may take a long while before you are able to capitalise on your investment. Many people die everyday but most will have some sort of preparation to be buried already. If you are really serious about selling your plot then you must advertise as early as possible to get more inquires.

You should give priority to buyers whose family member is about to die or has recently died. They are more likely purchase your plot on impulse or emotion and not likely to haggle on price. They are different from professional investors who buy cemetery plots as an investment and would likely buy your plot at the cheapest price when you most want to sell.

You can also contact cemetery plot owners that are located right next to your own. Most likely these people would want to bury all their dead in the same place. These people will be the most interested ones likely to buy your plot because of this basic need. People do not want the hassle of going to different cemeteries or different cemetery locations because the dead are buried in different locations.

If you intend to use your cemetery plot for yourself or for a family member take note that burial services can be expensive sometimes worth more than the plot itself. Cemetery owners may not accept burial requests unless their terms are met so also make sure that burial contracts are not to your disadvantage when you buy cemetery plots.

Cemetery Ownership

Investing in cemeteries are safe because of the Perpetual Care Trust Fund which ensures that there will always be money to maintain the cemetery even after all the cemetery plots have been sold. This trust fund comes from a portion of the sales of the cemetery plots. This is the reason why commercial cemeteries can exist without continuing maintenance payment from cemetery plot owners.

This means you as the investor will receive regular payouts from the interest of this trust fund. I cannot find articles though on investment terms and payout schemes for cemetery investors though. One thing is for sure. There are investment companies that do invest in cemeteries for the long term.

There are other ways cemetery owners make money after the cemetery plots have been sold. I have previously mentioned already Burial Services and Products such as gravestones. Cemetery owners can also earn if their clients wants to avail of cemetery plot beautification services. Many people especially the rich do this.

Owners can also Rent Out a Place Within the Cemetery for performing special events. For example a famous person who passed away might reach their 100th birthday and the people who love them want to celebrate this event near the grave of the deceased person. Dead people can be so loved that even in their death they maintain a loyal fanbase who regularly visit their graves.

The owners can Rent Out a Portion of the Cemetery for businesses that sell flowers, candles and food for visitors of the cemetery especially during the holy week. Some of these business spaces are even a permanent part of the cemetery.

Owners can also Rent Out Canopies and Picnic Mats especially during the holy week when the families of the deceased usually stay a long time and even camp out to celebrate the occasion. This is especially true if the weather is unbearable like very hot or rainy or if the grass is very moist that the visitors of the cemetery has little option but to avail of these services.

The owners can also offer Grave Cleaning Services as well as Flower and Candle Laying Services to clients who are too busy or are now incapable of visiting the deceased like if they become paralysed or sick themselves. The cemetery can send proof that they have done the service by sending picture of the grave.

Conclusion

There are ways to earn from cemeteries whether by buying a cemetery plot or by investing in the cemetery itself. It is not a dead business (pardon the pun) but can be a stable and profitable business for anyone. You might not even consider this an investment or business once you realise that you may need these products and services one day.