Looking at the images with all the housing around it, you could probably turn that handle into 8-10 lots for homes which would more than likely go for more than you paid for the entire acreage. Which could help you build up money for the prime land when the time to buy that comes round.
Tough choice. You're obviously doing well on the other property and would be awesome to own that land. On the other hand, that landlord really doesn't owe you anything and unless there is a contract, like mentioned many times before, I'd be a little nervous holding out for something to go wrong down the road. Situations like this are tough because you never know the "could haves" if you bought this property and the other one came up for sale a year later. Same way with waiting out for the other one for it to be sold underneath you or not for 10 years. Personally, I would not buy this simply to say I own land. Being in a residential area like that, I feel like you're going to be more worried about trespassers and thieves more than you already do (if that's even possible!). I liked the idea of potentially leasing it for a year or two to get a good feel for the property. Good luck with your decision!
I think Rick James makes some good points. One aspect that some people don't consider is that it is fairly affordable for most of us to buy a place to deer hunt, however very few people can afford to buy enough deer hunting land. What I mean, is most people I know that own hunting land do not hunt just the land they own.
For the record I do appreciate Rick James thoughts, different perspective is priceless when weighing things. I am back in hearings and than my after main job part time gig. Will check back later on...again appreciate it. The ones speaking up mean a lot to me!
I would not buy land I didn't live on for hunting. one you have trespasser concerns, second I believe it is a huge advantage to live where you hunt, from scent control to scouting.
If you can get it for 44k it could easily return the investment three fold in short order. Not many places where you could get that kind of return on an investment whether you hunt it or not!
At $2K/acre, I would buy now, hunt it until I felt like the increasing development was killing the hunting, then sell for a nice profit. Sent from my iPhone using Tapatalk
Have to consider the tax rate on unhomesteaded land as well as the capital gains, hard to make money on land alone in 5 years or less.
If you're thinking of building, now or later, is want to know: Floodplain? Utilities available or access? History of the land (i.e. it's not a superfund site, former mine, dry cleansers, service station, etc)? Local zoning & ordinances which may limit use (especially hunting or development)? Being the skeptic, why hasn't this business man already developed (maybe I missed that)...
Not when your being below value with potential for development.. Not sure how they tax property up North Sota.... but we're not talking a a retirement return here...
On 22 acres the profit margin would be eaten up by closing costs and taxes alone. Here in Minnesota there is a substancial tax difference if the land is homesteaded or what it is zoned. The difference between land that is zoned ag vs residential or industrial is a wide spectrum as well.
Ty, Not sure you saw my post, but from my perspective, it would almost make more sense to use this as a temporary hunting area if you would also still be able to continue hunting the farm as well, BUT, more so as an investment to sell it for a bigger return to be either developed for residential or commercial. According to the topo shots you provided it looks like the area is both residential and commercial and either one could apply. For the price you'd be buying the land, I think you'd see a good return, unless of course that wouldn't be kosher to buy it from the guy at a discount rate and then turn and sell it a few years down the road to someone trying to develop there. I look at property as an investment, not just a hunting property. If you don't want the hassle of flipping it, I wouldn't buy it just to hunt it considering the surroundings.
I wouldn't buy the the land if hunting was the primary motivation. For a purely recreational property it doesn't sound like it's really what your looking for. If your primary motivation was future profit from the land and you were purchasing it a price that ...I hate use the word insures, but ensures a potential significant return a later time and hunting was a secondary benefit then that's a different consideration.
Just to answer some of the new questions which may trigger further discussion: Taxes now are at worse case scenario $950/year...but I'd farm out the field to the East and the assessment would decrease some and tax liability would be about $500/year worse case. I am not flush with funds to just go buy land without use associated with it...however that said I would have the land to hunt and work on...still have access to the farm I hunt now for bow season only (trying like heck to change that to year round) also. This property definitely at $2K/acre is a solid investment which is a definite "positive" if making a list of pros and cons.
If Ty buys this property and makes money selling it, cant he use that money on a different piece of land with out paying capital gains tax?
Very likely. Some states have laws that discourage speculating and if you don't hold it for 5 years or more, they asses additional taxes. In my state, I haven't seen much land that had any develop-able land for sale for $2000 an acre for a long time but I don't know what your market is.
I would talk to the farmer on the piece of property that you really want to buy and ask him how long he thinks it will be before he would be willing to sell to you. If he does not know or thinks it will be quite a few years then I would buy the piece now and sell it later when or if the other piece becomes available. If you are getting it below market value it should be easy to at least get your money back out but most likely make you money which would bring your actual cost down on the other property. Who knows you may end up with a better property than you though in the mean time. Good luck no mater what you decide Ty.
The plan as of now is to contact the guy "selling" and try and schedule a meeting for a walk through and meet up next week. In the meantime I am gonna try to bring up the purchasing process to the current farm (by the sanctuary) and see what he thinks....depending on the answer the meeting for the property in question may or may not happen.
