Buying land a good investment?

[pitbull88]

With the uncertainty in the market, I am considering putting my money in physical assets. I am intrigued by the prospect of purchasing land. Farm land is priced high right now.

But, what about recreation property? Acreage with perhaps mountains, streams, woods, wildlife. Is this a good investment at this time?

Aside from the pride and sense of empowerment from owning such a property, can it be a good financial move?

Just curious on people's thoughts and experiences.

 

[buckstopshere]

That's what me and the wife are working towards ourselves. Paying off our debt then buying property(s).

I like physical assets for sure. It's always good to own tangible things in my opinion. If you can, I would just encourage you to pay for your land with cash and not a loan. Others may disagree with that but that's just my two cents.

 

[shibumiseeker]

My land has paid for itself several times over in actual income, AND I've gotten a lifetime of enjoyment from it.

 

[ATOMonkey]

Land is only an investment under certain conditions.

What you describe would be a hedge against inflation at best.

You'll still have to pay taxes on it, and you're taking a gamble on a future market.

Rate of return would likely be low.

The only way land is an investment is if you work it.

 

[shibumiseeker]

Land is only an investment under certain conditions.

What you describe would be a hedge against inflation at best.

You'll still have to pay taxes on it, and you're taking a gamble on a future market.

Rate of return would likely be low.

The only way land is an investment is if you work it.

Not quite. Land can produce income without working it, but it does require understanding of how to do so. Land can produce MORE income if you work it, but any decent piece of land should be able to pay for its taxes and overhead without working it if the owner has any business sense.

 

[pmorriso]

I know people that buy property, specifically wooded, to lease out during hunting season. It's a good way to pay off land fairly quick.

 

[shibumiseeker]

I know people that buy property, specifically wooded, to lease out during hunting season. It's a good way to pay off land fairly quick.

Exactly. Rents can be part of an income as can resource mining, like buying the wooded land, timbering it, and using the income derived to defray costs.

If I do nothing at all to my forest it will still appreciate in value. With no management at all it can still provide periodic (10-20 year interval) income. With modest management (an hour per acre per year say) that income potential can double or triple.

In a good market, I can split off part of that land into smaller parcels and sell enough to retain a larger parcel at no cost.

There's LOTS of ways land can be a good investment, but you have to know how to exploit it.

 

[pmorriso]

Forgot to metion the wooding aspect good save shibumiseeker! With the push for certain type of furniture grade lumber you could begin logging and replanting if you pay attention to what you have on the property(type of trees and critters). With wood being a big player in high end furniture the term "wood porn" is a huge correlation to a massive payout factor! Just remember to replant.

 

[The Keymaster]

The land that we just purchased has a full stand of timber including tall pine and hardwoods. There is also a natural gas well on the land adjacent to ours. We receive royalties, as the well pulls resources from beneath our property.

 

[Survivalcookie]

I think as a survival tool ...land is one of your best investment...we hope to buy some in the middle of nowhere with in the next 2 years. I do not even care if it has utilities to it.
Solar energy, a well and a septic and satellite TV and internet. i would like woods and water on it...

 

[Richwon4]

From my experience the last thing people will stop spending their money on is their hobbies. As more hunters and fisherman lose their jobs they will be spending more time in the field. People have to believe in the economy to want to own much of anything as for me I do not. In my opinion now is not a good time to own homes and property. Unless you can own enough property that it will draw in the right kind of crowd for hunting. Leasing it out for two week periods of time all throught the season to get it mostly paid off before you reclaim it as your own. This takes a large large parcel of land to draw in the right people. As for how to pay for it....simple...if you can get a loan for 400 plus acres do it. Even if you have cash. THE MONEY YOU BORROW WILL BE WORTH FAR LESS THAN THE MONEY YOU WILL PAY BACK. For all of you wondering if I am another one of those irresponsible spenders...I have zero debt. Another thing to consider is that if or maybe when the goverment claims their share of your prorperty would you not rather have the bank be the primary loser.

 

[jenniferlark]

I too agree that it's not the better time to buy house or property. However, still if you need to buy it, then contact some real estate investor. They can only help you in this investing strategy.

 

[churchmouse]

The person that owns the land we use as a BOL has done exactly as shibumiseeker has done. He started out with "X" acres...had select timber logged...used the money to buy more land next to his and repeated the process. He now has expanded his holdings 7 times and the land is free and clear except taxes etc.

 

[dudley0]

Land will always have value. I own a lot of land, but mine are all residential properties.

Combined they pay for themselves, cover all maintenance and provide me with a tidy sum of cash.

Looked into buying a few plots of farm and wooded ground but the big farmers were all over it and I couldn't compete. I keep watching for anything that looks interesting.

I live off of and re-invest the money from my properties. I own a few outright, but I prefer to make a little money on a lot of places rather than a lot of money on a few.

My suggestion would be to invest if you can. Make sure you have your house in order first.

 

[XDLover]

Land is NEVER a bad investment unless its toxic lol
It also can work for you or be a hedge against something. Again depending on what you want it to do. The wife and I have talked about buying land in a neighboring State for retirement. I'd rather pay cash money if at all possible too.

 

[Irukanji]

People always want real estate to live on farm and hunt. I own a good deal of rental property and a little hunting land and feel good with the decision to own them.

 

[wagyu52]

Well, one thing about land is there is very little being made anymore.

 

[zerocool]

Can anyone recommend a good land broker to deal with. I am looking to buy 20-50 acres. Mostly wooded hunting/recreational land.

Any suggestions?

 

[TiminMishawaka]

Like anything, good land with good knowledge and a good plan of how to use it is a good investment. I've read shibumi's posts on his land before. It would be a good idea to look at some of his past posts he's made about what he's done with his land over the years.

 

[Rock River]

Can anyone recommend a good land broker to deal with. I am looking to buy 20-50 acres. Mostly wooded hunting/recreational land.

Any suggestions?

Try thelandmanonline.com. They always have rural properties that look interesting. Even had a property with an extensive cave system awhile back. Pretty cool.