Buying land vs rental property

[Rahul Challapalli]

Below are the variables ( known to me) impacting the inflated housing prices now 

1. Growing population = More demand 

2. Low interest rates = more affordability

3. Stalled production due to pandemic = Low supply 

4. High materials cost = Increased price 

5. More WFH jobs = more demand for suburban homes with bigger sqft and yards 

2,3,&4 are likely to change driving the prices a little lower. I am not sure how long it might take. This might make investing in a rental property a little riskier. Of course, like dollar cost averaging in stocks, we can keep investing over time to reduce the impact of timing the market.

Since the current demand has to be exhausted more construction has to happen which requires more land to be bought in the future. Assuming land prices are not as inflated as home prices (2,3&4) might not directly apply to land prices, I am inclined to think that buying land in a suburban neighborhood (due to WFH scenario) might be an attractive option. I believe we are seeing a change in the decades old global trend of moving to bigger cities. People moving away from places like CA,NY etc still want to be close to a small city rather than a village

Would love to hear from others as to what they think about the land vs rental property comparison. Appreciate your time and inputs

[De Rasche]

Jim Rohn said something like, you think there are risks, '"oing nothing" is maybe the biggest risk.

How about buying land (and/or) rental preperty. Or my favorite is land with a rental on it.

If you find folks you trust to help or learn what are good buys or get lucky, both rentals and land are potentially good.

I look for both in the path of growth of new suburbs, new jobs, new schools, rail intermodals, etc. 

Personally, despite all my efforts to learn, listen and make smart investments...

100 acres I bought just outside the city to have fun on, wound up being a great investment.  

Enjoy your journey