Buying Land

[DurocShark]

I've got a line on some land out by Edwards AFB for $1150 an acre. The seller has 20 acres and is owner financing. Assuming I can get him to get the payment where I can afford it within reason ($150 month) I'll probably pull the trigger.

I've checked and the property taxes will be like $100 a year. So that's no biggie. But what else am I looking at? I've never bought anything like this before (and I'm in my 30's. Sigh).

I don't really want to do anything with it. I just hate not owning any real property. Whenever I finance a car or something the first question is "do you own a house or any property?" Plus my only investment is some $10k in mutual funds. I want more and this I could afford. Especially since I can't save for sh!t. I just spend savings.

Any thoughts?

 

[Ogg]

me either 🙁
Do it and then you can tell me about how cool it is to own land 😀

It is near an air base though :Q

 

[moshquerade]

land is an awesome investment. they sure aren't making any more of it.

 

[rudder]

Need more info on the land. There are lots of factors invlolved that will make you realize if this is a good deal or not. 20 acres in the middle on nowhere may be worth $10 acre versus 20 acres of downtown real estate could be worth millions.

 

[GasX]

I have never been to Edwards AFB, so I have one question for you:

In the time frame that you expect to own this land, do you see that it is likely that the land around yours is going to be developed?

The answer to this question should guide your answer unless you want the land to use for recreational purposes...

 

[DurocShark]

Originally posted by: Mwilding
I have never been to Edwards AFB, so I have one question for you:

In the time frame that you expect to own this land, do you see that it is likely that the land around yours is going to be developed?

The answer to this question should guide your answer unless you want the land to use for recreational purposes...

Yes and yes.

The area is growing. It *is* in the middle of nowhere, but so are the two towns next to it. And they're growing. I expect this land to appreciate a bit in the time I'm paying on it. Probably not a lot, but enough to pay for the interest I believe.

Plus, I'm a photographer. 'Nuff said. 😀

 

[no0b]

1. Buy Land
2. Grow Weed
3. Profit

That would be the last place to look for weed, right next to an AFB.

 

[Doggiedog]

Make sure its not a toxic waste dump or anything. If its near an airport I would be afraid of polluted runoff from the airport.

 

[waggy]

hmm thats not bad. i think i would go for it.

 

[woowoo]

Zoning.......
(Check it)

 

[SearchMaster]

Yeah, if it's strictly for investment purposes, you'll need to find out more about it. Somebody once told me that land needs to double in value every four years or so to be a good investment. Obviously land with a rentable structure has different guidelines.

 

[dman]

Seems like a lot to spend on land for no other purpose than to own land. Being right next to AFB could be profitable (slightly) if they need more land in the future (doubtful, and emminant domain [sic] is a factor).

Historically, people don't tend to want homes near airports... but if you have other intentions perhaps it's right for you.

If there's some nice hideaways could make a nice campground, or, paintball zone, or, MTB trails, etc... but you typically don't make money on any of those things, especially after insurance is considered.

Check zoning and of course, remember, Location Location Location.

 

[DeMeo]

When /if you want to build (or consider for when you would sell it): Is there town/city water/sewage available? If not, then test pits/septic design need to be done and certified (typically certified by state inspector). The land is worthless if a septic system can't be built and if there is no available public sewage). The same goes for water supply.
When buying land that you want to build on, you would typically want to make sure you have some water and sewage options. A lot of time the owner of the land will have this done before listing the land for sale.

Also, consider how long you'll own the land and be paying the taxes for something you?re not using. Even though the land appreciates, consider whether or not the appreciation exceeds the amount you'll pay in taxes. As an option, in some cases you can list the land as "in use" which will yield a lower tax rate, however if it's listed as "in use", you can not build on it. This is often done when you own a large parcel of land, you would build on say a one acre section and list the remaining acreage as "in use".
The downside is that when you do decide to build you would have to pay a fee which in most cases is 10% of the value of the land. You may think that you won?t build on it and that the next person can eat that cost. Maybe they will, but if they have to pay that fee, then they may not want to pay you as much for the land. These laws vary from state to state, so you need to do some research.

I've seen cases where people buy land and sit on it for a while and then sell only to realize that after paying all of the taxes (including sales transfer taxes) that they really didn't make any money or very little. Do you want to tie up your money for a long period of time for little or no profit?


Plus, as you mentioned it's near and air base. This could be detrimental to the value.

You really have to research before jumping in.