I suppose this question could be directed more toward the "older" members here whom have done this, but any input is welcomed. As it stands, my wife and I stared investing early; me with a TSA, and her with her company match 401k. We're also pursuing setting up a few "short term" investments like a Roth, but with how volatile the market can be, the more I think about it, the more I wonder about investing in property. Not really rentals/apartments, but more particularly land, and waterfront. My parents bought a waterfront home in Canada back in 1997, and it has, since then, tripled in value. Granted, they bought when our dollar was strong and demand was low, but it really started to show that property can be a solid investment, that if done right, can be more "secure" than traditional investments. Has anyone here bought property as an investment? Wished you did? Any advice on identifying key characteristics that can make it a solid investment? I know that land around here is pretty much impossible to find, or to find at an affordable (to me) rate, but I've considered creek frontage, water frontage in NY, and even homes in FL (where the market has REALLY taken a plunge in the last few years and homes can be had for significantly less than a few years ago). Just curious to hear the thoughts of those who have done this or considered doing this.
Yes it can be a great investment. They aren't making any more of it that's for sure. I purchased 85 acres of hunting/investment property a few years back. According to a few properties in the area that have sold recently mine should be worth more now. And that is after a downturn in the economy lately. But only invest money which you aren't going to need in the short term. Sometimes you may not be able to unload property and get your cash back if you need it immediately like you would with other investments. If I had a pile of money thay I wouldn't need to get to for a while, I'd buy as much property as I could afford. I wish I would have done this years ago. Where I hunt the property values have increased 5X or more in the last 10-15 years. Can't say that about too many other investments.
Property will only ever be worth what someone is willing to pay. Just make sure you think long and hard about the location and the future of that location. I don't see how you could go wrong with waterfront. Good Luck!
Careful with waterfront. Taxes can eat up much of your profit. Same with any land really. Personally, I'd only buy "investment" land if I was going to use it in the meantime.
The last one I bought was 105 acres....I had it logged then sold it for what I bought it for, LOL!!! Lots of money to be made in land these days.
Good point on the taxes. If I was purchasing waterfront, I would most likely rent the place out a few weeks during the summer (or if in Florida, much of the year). Josh, did you buy the property strictly for logging and reselling? How much time had passed from the time you bought and sold?
Yes, thats what I bought it for....took about a year and a half to turn it over. Put all profits into stock...they made a 3 for 1 spilt last month, CHA<<<>>>CHING!!!!
If you buy timber, you can also enjoy some decent tax saving by having a legitimate harvest plan and writing off the interest, taxes, upkeep, etc. You might even could write off a new Bad Boy Buggy as farm equipment
Like was said, don't buy if you'll need the $ in short term. We make $13,000/yr off of ours, and yes it allows for monster tax write-offs. Suggest looking at a piece that does offer some amount of income, yearly.
I did this once worked out pretty sweet. I was almost thinking about doing it again with land prices dipping in the area could be a good time. As for investment property I'm more of a house flipper.
