Of course we all know that there are some folks that can buy and sell real estate and get rich, but for most of us buying land is a purchase, not an investment.
Of course we all know that there are some folks that can buy and sell real estate and get rich, but for most of us buying land is a purchase, not an investment.
STUPID
The ROI on farmland is the price increase PLUS the profit made farming (or renting) it.
The ROI on a house is the price increase PLUS the saved rent (or rent collected).
Just buying and holding land and housing isn’t a good idea, neither is just holding a bond and not collecting the interest!
And that’s the comparison made.
I’ve bought, sold, flipped and rented out homes since I was 26. I’ve never made less than $30K profit on any property, (making a killing on my little farm that I just sold but I knew that 25 years ago), LOTS of tax deductions in-between, and I always had a place to live no matter what. My Dad gave me my first $1K towards a down payment, and I never looked back.
It can be done, but now that my last property is SOLD I’m done with it. I don’t have the time, energy or patience for that cr@p any longer. It’s a younger woman’s game. Never say NEVER, but I don’t PLAN on owning a home again.
And, of course, I’ve always diversified. Stocks, Bonds, property, precious metals. It’s really not Rocket Science once you learn the basics of investing. Buy & Hold pretty much works every time it’s tried. :)
Those states with small populations and a lot of land should create their own version of a “homestead act”, but not with just inexpensive land. With something that might prove irresistible to many people.
A 100 year guarantee of no property tax, inheritance tax, or eminent domain.
And a clause that if the federal government tries to take their land *or* diminish its value through use restrictions, that the state must buy it back at five times its original or current value, whichever is greatest, if the landowner chooses to sell (giving the state a strong motivation to stand up to the federals.)
This act would have severe constraints on it, however.
It would only apply to lots of land between 1 and 5 acres, with the only residence thereon to be the owner’s single family home. And that family must dwell there six months and one day each year. No renters or sublets. No commercial ownership, in all or part, and the land cannot be used as collateral for loan agreements. Nor (as in Florida), can it be taken because of bankruptcy.
I’m sure there are other add-ons that could be made to this deal, so those states would have people clamoring to move there.
For me it’s been extremely lucrative. I flip properties and rarely do worse than double my money.
Plus it’s fun doing fixer-upping on some of them.
With our tax policy private homes are in la-la land, it isn't a level playing field. 1st you get to deduct the mortgage and taxes and then you get 250k or 500k tax free on a sale. Now along the way you have improvements and repairs. IMHO if Homes had the same tax rules as stocks and bonds and we saw the real cost were you'd see what bleeping money pits they are, and the marble counter tops would go bye-bye. Been their done that without getting into the details.
Taking a calculated risk on the creative nature of man to invent new products ( including medicines ) for the betterment of man or even to buy into a company that provides and services ( Utilities, P & G etc ) and to invest in their desire as well to better their lot in life is far more attractive to me than the money pits. Just my 2 cents...
Farmland? What does investing in land have to do with farmland?
Good arguement on both sides of the rent / own debate. Timing is everything when purchasing. I bought my one and only home at the real estate lows of the 1990’s Got into my house 30k less than the orig owner paid for the house new 7 years earlier. Let alone all the money he put in for land scaping, back yard slab, hot tub.......
My home now goes for 300k more than we paid. We are well ahead of the game had we been paying rent for the last 19 years even with the up keep, property taxes and interest. (which are deductable) It’s not cheap to rent a three bedroom home in So Cal in a nice area.
Good arguement on both sides of the rent / own debate. Timing is everything when purchasing. I bought my one and only home at the real estate lows of the 1990’s Got into my house 30k less than the orig owner paid for the house new 7 years earlier. Let alone all the money he put in for land scaping, back yard slab, hot tub.......
My home now goes for 300k more than we paid. We are well ahead of the game had we been paying rent for the last 19 years even with the up keep, property taxes and interest. (which are deductable) It’s not cheap to rent a three bedroom home in So Cal in a nice area.
Good arguement on both sides of the rent / own debate. Timing is everything when purchasing. I bought my one and only home at the real estate lows of the 1990’s Got into my house 30k less than the orig owner paid for the house new 7 years earlier. Let alone all the money he put in for land scaping, back yard slab, hot tub.......
My home now goes for 300k more than we paid. We are well ahead of the game had we been paying rent for the last 19 years even with the up keep, property taxes and interest. (which are deductable) It’s not cheap to rent a three bedroom home in So Cal in a nice area.
15 year Investment Timeframe for Real Estate.
You gambled with your son or daughter’s future by telling them to buy real estate.
Some made money, sheer luck, while other folks lost. Funny how people ignore the relative who went $200k underwater and 20 years to break back to even. That $200k debt went to a foriegn Federal Reserve bankster.
Thank you dad and mom, but next time I do not need the careless investment advice, is what a child should say.
Google Rich Dad Poor Dad Critic. Mr Reed gives a good advice.
There’s a reason they call it REAL estate, or REAL property.
I must disagree.
There has been absolutely no discussion of the utility of land, only of its market value.
Land, unlike a piece of paper (with the exception of stock dividends and interest payments), has the potential for enormous return.
Farmland, timberland, grazing land, etc., if used correctly, produces income.
The idea is not to buy it, let it sit, and hope the cost per acre increases.