Buying residential land
I am in the bay area and am looking to buy some residential land. The reasons being -
- There are no more values in homes in the bay area.
- I actually see one or two listings for land that seem like good value.
So my question is -- is investing in land any good? Does it appreciate with the market and will there be any buyers for it later on? Or will I be looking to sell it to developers?
@Paul S. When buying just land the most important thing is Location, Location, Location! Buying it and hoping it goes up is speculation. Kinda like going to Vegas unless you have some inside information on a sure up and coming development that will need the land.
Happy Investing!
It depends on what you buy.
In town or outside. Oakland/San Francisco or Tracy?
How long will you hold it for 1 year or 10?
Do you need your money back quickly? Land is not liquid and may have a longer selling cycle.
I have sold flat land lots and hillside lots, residential & commercial.
Find a motivated seller, buy below market & develop instant equity. Know your exit strategy when you buy.
I just talked to 5 lenders last week, they said max is 50% ltv, must have building intentions / plans for them to loan. Think contractor - builder - buyer, unless you will build it out yourself. Manufactured home?
Good luck
