Property Water Rights – Lease Agreements
Discover Water Trading Markets and Property Lease Agreements, a fresh approach to trading future water rights and property investment providing valuable portfolio diversification and inflation protection:
The value of water has historically acted as an effective hedge against inflation. In the United States, Australia and parts of Africa, overall water prices have consistently risen in excess of the rate of inflation. This increase in water prices is driven mainly by the need to upgrade infrastructure and sources of new supply (storage, transmission, treatment) and competition among users of water (industrial, agricultural, residential and environmental).
Compared to Electricity, Gas, Cable, Telecoms: The current low price of water leaves ample room for price increases to more accurately reflect full cost and delivered essential value.
Low Correlation and Volatility
Water demonstrates a low level of correlation with a broad universe of commodities and equity indices and has also tended to increase in value more consistently over time.
Water is a critical input to the majority of future growth areas: food and energy production, oil and gas development, manufacturing, mining, housing, and data storage among others, allowing investors in water to gain broad exposure to a variety of real assets and economic activity.
Liberty House Capital believes that these factors are producing an unprecedented period of transformation in the industry in which a limited number of water companies will thrive and a select number of water assets will prosper, offering investors the ability to realise substantial capital appreciation as well as sustainable long-term income, with relatively low levels of risk and volatility.