Buying Land??

Don't think it's a very wise investment unless you have a lot of capital. You're relying on a lot of factors

really? even if I could by them for 4k-5k?

this would represent maybe 20%-25% of my total liquid cash at the moment.

more info: before this auction the bank was selling this properties at $9,900 each

God only knows where land values will be in 5+ years. I wouldn't do it for 20-25% of my liquid cash, I'd rather pump that money into an IRA

paying an HOA on vanila land is absurd. Not worth buying unless you plan on building as to flip.

brb paying nearly $1k/year in fees on my $5k investment which has been steadily declining in value for the last 5 years

I think it's dumb with fee's and such. While it's not good to sit around with USDs in the bank when your FED prints money like crazy and land is something I'd generally recommend that's probably the wrong kind of land. Unless your economy turns around in a big way, who on earth will build houses? I know the FED a shitton of MBS's or whatever they're called each month, but land in the US for those prices is not as much an investment as a speculation that a bigger fool will buy them slightly higher.

If you actually think the economy will turn around and such, buy some kind of Canadian stocks or whatever, preferably a few that will actually pay you some money for owning it each year. Less risk, no paying 720/year etc.

For starters I don't get how $720 + $136 = $890. Also the taxes from 2005 to 2012 have increased from 1.77% to 1.84%. So anyway you look at it I guarantee your investment over your seemingly arbitrary 5 year period won't be $9450. HOA fees never increase? Unless there is some property expert from Benin (?) then no one will have an accurate idea AT ALL of the quality of that investment from the information provided.

Did the bank have these lots merely on sale for $9900? Or were they actually selling them for that price ie/ people were buying at $9900. It might not matter at all that one house is selling for $79,620 as you apparently have a sample size of one that could of been on the market for ages or been reduced multiple times etc. You give a vague $10,000 estimate if Romney wins (which despite the latest debate seems unlikely, although I'm not American or a US politic guru). You should be looking at the economy and it's health as well as any housing demand and supply figures, mortgage approval rates, clearance rates etc to get some sort of general idea where your property market is headed.

I think you have a lot more work to do before plopping down 5k (possibly).

Play some 5/10 at the local card room

On October 09 2012 00:39 byrnesam wrote: brb paying nearly $1k/year in fees on my $5k investment which has been steadily declining in value for the last 5 years

this just about sums it up, lol :D

why not just purchase 5 - 10k in gold? seems like a much smarter gamble

I watched a few Warren Buffet interviews the other day. He says that when investing, you need to have knowledge of what you are doing, knowledge of the business, and to only invest in things you are pretty sure will appreciate in value.


Take that for what it's worth.

79k for a house? What you planning on building a shack?

Where is the land and what's the size?

Where is the land and what's the size?