Investing in Land
- Thread starter LeighF
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yes, you can have a few SPECULATIVE properties in your portfolio (and I had some)!
land is always negative cash-flow due to taxes, unless offset by grazing or oil or timber leases !
Yuou can sometimes get a line-of-credit of up to 50% of value on it. You speculate the value goes up, which it does usually .. the question is: how long will it take for any meaningful appreciation ? 1 year ? 3 years ? 10 ? 25 ?
an angle on it is to sub-divide or develop the land, i.e. make a 10 acre lot into 3 2 acre lots with a small road and services .. very profitable in the right (growth) area !
land is always negative cash-flow due to taxes, unless offset by grazing or oil or timber leases !
Yuou can sometimes get a line-of-credit of up to 50% of value on it. You speculate the value goes up, which it does usually .. the question is: how long will it take for any meaningful appreciation ? 1 year ? 3 years ? 10 ? 25 ?
an angle on it is to sub-divide or develop the land, i.e. make a 10 acre lot into 3 2 acre lots with a small road and services .. very profitable in the right (growth) area !
QUOTE (thomasbeyer2000 @ Feb 8 2008, 12:36 AM) yes, you can have a few SPECULATIVE properties in your portfolio (and I had some)!
land is always negative cash-flow due to taxes, unless offset by grazing or oil or timber leases !
Yuou can sometimes get a line-of-credit of up to 50% of value on it. You speculate the value goes up, which it does usually .. the question is: how long will it take for any meaningful appreciation ? 1 year ? 3 years ? 10 ? 25 ?
an angle on it is to sub-divide or develop the land, i.e. make a 10 acre lot into 3 2 acre lots with a small road and services .. very profitable in the right (growth) area !
We are thinking of buying some land just north of Meadow Lake Sask. Housing has been going up there in the past year, and alot of land owners are now starting to subdivide their properties. What are your thoughts?
land is always negative cash-flow due to taxes, unless offset by grazing or oil or timber leases !
Yuou can sometimes get a line-of-credit of up to 50% of value on it. You speculate the value goes up, which it does usually .. the question is: how long will it take for any meaningful appreciation ? 1 year ? 3 years ? 10 ? 25 ?
an angle on it is to sub-divide or develop the land, i.e. make a 10 acre lot into 3 2 acre lots with a small road and services .. very profitable in the right (growth) area !
We are thinking of buying some land just north of Meadow Lake Sask. Housing has been going up there in the past year, and alot of land owners are now starting to subdivide their properties. What are your thoughts?
QUOTE (SamEfford @ Feb 8 2008, 08:21 AM) Make sure you do your due diligence and not get caught up doing what everyone else is doing. If the fundamentals are there, and the numbers work, then go for it.
Thanks Sam for your input. I appreciate the feedback.
Thanks Sam for your input. I appreciate the feedback.
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I don`t know this area .. do people want to live there ? do people move there ? how far from the next "big" city ?
what is the cost of sub-dividing ? costs of sewers, roads, utilities are HIGH and the process can take LONG .. years in some cases !
Do you have the cash to do that ?
Is the municipality open to sub-division ? Some councils are very pro-business .. some very anti .. some so-so ..
so if lights are green: GO FOR IT MAN !!
check the lights though before proceeding !!
what is the cost of sub-dividing ? costs of sewers, roads, utilities are HIGH and the process can take LONG .. years in some cases !
Do you have the cash to do that ?
Is the municipality open to sub-division ? Some councils are very pro-business .. some very anti .. some so-so ..
so if lights are green: GO FOR IT MAN !!
check the lights though before proceeding !!
QUOTE (thomasbeyer2000 @ Feb 8 2008, 12:15 PM) I don`t know this area .. do people want to live there ? do people move there ? how far from the next "big" city ?
what is the cost of sub-dividing ? costs of sewers, roads, utilities are HIGH and the process can take LONG .. years in some cases !
Do you have the cash to do that ?
Is the municipality open to sub-division ? Some councils are very pro-business .. some very anti .. some so-so ..
so if lights are green: GO FOR IT MAN !!
check the lights though before proceeding !!
I know the economics of this area are improving, but it won`t meet some of the criteria Thomas states above. Certainly an attactive part of the country, my family has had a cabin 30 miles from there for the last 50 years. More and more of that "Alberta" money coming in there especially for rec. properties.
Maurice
what is the cost of sub-dividing ? costs of sewers, roads, utilities are HIGH and the process can take LONG .. years in some cases !
Do you have the cash to do that ?
Is the municipality open to sub-division ? Some councils are very pro-business .. some very anti .. some so-so ..
so if lights are green: GO FOR IT MAN !!
check the lights though before proceeding !!
I know the economics of this area are improving, but it won`t meet some of the criteria Thomas states above. Certainly an attactive part of the country, my family has had a cabin 30 miles from there for the last 50 years. More and more of that "Alberta" money coming in there especially for rec. properties.
Maurice
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- 13,881
yellow lights .. proceed with caution .. why not do some more due dilligence .. then perhaps proceed !
QUOTE (3Girls @ Feb 8 2008, 11:20 AM) I know the economics of this area are improving, but it won`t meet some of the criteria Thomas states above. Certainly an attactive part of the country, my family has had a cabin 30 miles from there for the last 50 years. More and more of that "Alberta" money coming in there especially for rec. properties.
Maurice
The municipality is very open to subdividing. More and more land owners are doing it now. The land we are thinking of purchasing is in the process of subdividing now. We will purchase it based on subdivision approval. From the information I`m getting from the realtor it isn`t a problem and right now it usually takes between 9 - 12 months for approval. We can always back out if it doesn`t happen and get our down payment back.
Putting in power and water I think is expensive any where you go....
Maurice
The municipality is very open to subdividing. More and more land owners are doing it now. The land we are thinking of purchasing is in the process of subdividing now. We will purchase it based on subdivision approval. From the information I`m getting from the realtor it isn`t a problem and right now it usually takes between 9 - 12 months for approval. We can always back out if it doesn`t happen and get our down payment back.
Putting in power and water I think is expensive any where you go....