I am thinking about getting into investing, on a small scale. I'm trying to decide between buying existing properties (which I'll make another post on) or on buying land.
So as far as buying lots of land is concerned I am looking for some opinions. I have a location were the land is still relatively cheap for residential 1/4 acre lots. This is a seaside city in Florida that was hit hard by the recession, but is showing signs of life again. The areas to the north and south are getting pretty built up and soon, maybe 5-15 years this area should be a hotspot for growth.
If I buy and hold for the future it will only cost me a few hundred dollars a year for taxes, and I won't have to maintain anything. So I have about $5k or more to work with this summer and I'm trying to figure out if this is the direction I want to go. I can buy lots for cash for 4-7k and own them outright. Or I can buy a lot on the water and finance it for 35k+. The lots on the water that have homes already build are going for $300k up to 500k.
So would you rather have an inland lot owned outright, or a water lot that you mortgaged?
I would never finance a land purchase unless I wanted it to have for myself. Betting on appreciation is a real gamble. I would buy rental houses.
I would love rental properties, but I'm not sure I can find the financing to buy and do the renovations. The property inland is so cheap that I could get rid of it in a few years for what I paid and not be out much money. The property on the water is something I would hold for a while and either sell, or maybe build a vacation home on for ourselves.
I wouldnt buy land unless I plan on building right away.
I want to see my investment cash flow right away. No speculation.
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