2006-07-12 15:56:47 · 9 answers · asked by JENNIFER D 1 in Business & Finance ➔ Renting & Real Estate
When you buy land, you are not "investing" you are "speculating"... an investment has a return, what you are doing will only cost you money until you find someone willing to pay more for the property than you did.
In the meantime... you will pay principle, interest and..... PROPERTY TAXES on land that is sitting there doing NOTHING. That land is only a liability until it has something built on it or you sell it.
2006-07-12 16:02:30 · answer #1 · answered by robertonduty 5 · 0⤊ 0⤋
If you have money that you don't need now, sure maybe buy land to build on in the future. But its not the best idea since you won't generate any income on the land other than the appreciation, and even then, only when you sell. If your land can be rented for some use like cattle grazing or a driving range, you can use the income to help pay the note on the land which is a better option.
2006-07-12 23:06:17 · answer #2 · answered by fishingslutz 1 · 0⤊ 0⤋
As an investment alternative, raw land is one of the best. Assuming you don't have many holding costs, such as property taxes, raw land stands a much better chance to appreciate than improved property. This is because any developer has the maximum flexibility to choose what he wants to build. Whereas, if a building is built on it, the design was chosen by the orginal owner and not the future owner. Additionally, any building will deteriorate and require maintenance. Raw land only needs the grass cut, if at all, so its maintenance costs are minimal.
The value of most commercial or residential properties is directly related to the land location itself and given the rising world population, it is hard to lose.
2006-07-13 05:21:49 · answer #3 · answered by hellbent 4 · 0⤊ 0⤋
Land cannot be produced. What you see is what there is and always will be (give or take a few acres due to water levels). Wars have been fought over land. Cities fight legal battles over land. You can build a house on it, grow food in it, and make money with it. Land, in the right location, is always a good investment.
2006-07-12 23:12:16 · answer #4 · answered by CPH 2 · 0⤊ 0⤋
Why should you...
I guess you have some land which is a limited resource, an investment, and you can also use it for something while you are waiting to resell it.
It probably isn't your "best" investment for money making, and you have to pay property tax, but it sure is hard to go and hang out at your CD or money market.
2006-07-12 23:01:49 · answer #5 · answered by Paul L 2 · 0⤊ 0⤋
Land investment is good if you can improve it and raise its value. It is risky and expensive however, so be aware of over priced property. Check with City and County for regulations concerning what type of homes or buildings can be placed there. I assume you are speaking of raw land.
2006-07-12 23:36:15 · answer #6 · answered by bond_adambond 3 · 0⤊ 0⤋
LOOK AT IT IN SIMPLE TERMS HOW MUCH WAS A CITY LOT WORTH 10 YEARS AGO? PROBABLY ABOUT HALF OF WHAT IT IS NOW. THANKS TO URBAN SPRAWL LAND NEVER LOSES VALUE. NO CD OR SAVINGS BOND WILL EVER GIVE YOU AN EQUAL RETURN IN THE SAME TIME
2006-07-12 23:30:21 · answer #7 · answered by BOOGIE 1 · 0⤊ 0⤋
Of course...if you are a bit of a risk taker. Most lending institutions will not make a loan for raw land. Wonder why that is??????????
2006-07-12 22:59:47 · answer #8 · answered by homerunhitter 4 · 0⤊ 0⤋
I do not believe that you should. Better off putting your money in a bank CD or mutual fund.
2006-07-12 22:59:09 · answer #9 · answered by ps2754 5 · 0⤊ 0⤋