In the spirit of the "pay off house or not" topic, I too would like to hear your input. I have a chance to buy a one acre lot about 1/2 mile from Oklahoma's largest lake, Lake Texoma, you Texas and Oklahoma boys will know where I'm talking about. It's located near a resort. There's a public boat ramp, dock, store, gas on dock facility, "beach area" if you will and campgrounds. Land has water going through it, will have to buy a meter, and power as well. All other lots around are the same, one acre or more. A couple have some nice houses on it but others have a single or double wide, but take good care of their area. This is mostly for folks to stay during the summer, as there are only a couple of full time residents. Anyway, land is going for 7500. I know on the Texas side, lots are very expensive. It's about a 2 hour drive to get there, so I won't be going there a lot, especially with a 6 month old, but eventually I would like to build a nice boat garage and some sort of house or trailer. Like I said, in time. Think it would be a good investment at the least if I later choose not to stay down there? I'm about 20 years away from retirement and I can pay cash, no loans. Any thoughts? Ideas? Suggestions???
Buying land....
- Thread starter Schmoe
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In his "Real Estate Mailbag" syndicated column, Robert Bruss has fielded similar questions, backed up with horror stories. His advice has always been not to buy empty land that you don't intend to do something with within, say, a year.
His point is that it's too easy to put off things until you are physically unable to do them because of illness, injury, or death. Also, your family will have to deal with disposing of that land should it still be empty after you die. He has noted that vacant lots often are a poor investment, especially if there turn out to be hurdles to building such as lack of water, septic issues, pollution, a determination that they are wetlands and can't be disturbed, etc. Presumably you have power and water available, but other factors could be a problem.
You could also forget to pay the real estate taxes, especially as you get older and more forgetful or preoccupied, and find that the land has been confiscated and auctioned by the county. I know of such instances.
In my opinion, you shouldn't buy the land unless you know you can do something with it soon, not 20 years from now. Maybe that's not what you wanted to hear, but that's my $0.02 worth. . . .--Ed
[ June 04, 2004, 11:51 AM: Message edited by: ekrampitzjr ]
His point is that it's too easy to put off things until you are physically unable to do them because of illness, injury, or death. Also, your family will have to deal with disposing of that land should it still be empty after you die. He has noted that vacant lots often are a poor investment, especially if there turn out to be hurdles to building such as lack of water, septic issues, pollution, a determination that they are wetlands and can't be disturbed, etc. Presumably you have power and water available, but other factors could be a problem.
You could also forget to pay the real estate taxes, especially as you get older and more forgetful or preoccupied, and find that the land has been confiscated and auctioned by the county. I know of such instances.
In my opinion, you shouldn't buy the land unless you know you can do something with it soon, not 20 years from now. Maybe that's not what you wanted to hear, but that's my $0.02 worth. . . .--Ed
[ June 04, 2004, 11:51 AM: Message edited by: ekrampitzjr ]
Resort property is also subject to a whole new bunch of variables outside of your control:
What about that public boat ramp/beach? What if that goes away? Is there a deeded/public right-of-way to the water? Does that go through/near your land? What supplies the lake with its water, and the local aquifer: Will the water disappear? Is it being used faster than it's replenished?
How does the town/county/state tax for schools? If not already, they'll find a way to "stick it to the out-of-towners." This usually happens in the off-season at a special referendum.
Have you seen this land in person? How are the mosquitoes/snakes/local vermin during the bad season?
What about that public boat ramp/beach? What if that goes away? Is there a deeded/public right-of-way to the water? Does that go through/near your land? What supplies the lake with its water, and the local aquifer: Will the water disappear? Is it being used faster than it's replenished?
How does the town/county/state tax for schools? If not already, they'll find a way to "stick it to the out-of-towners." This usually happens in the off-season at a special referendum.
Have you seen this land in person? How are the mosquitoes/snakes/local vermin during the bad season?
Wow. Surprised of all the points against buying. I had speculated that real estate investing would be a smart move because almost all property has gone up, no matter where it is most of the time. Went to the area last weekend. Grass and trees, pretty much the story here in Oklahoma. Land is right next to the Corps of Engineers land, they have the easements. This lake is maintained by the COE and used as a water supply. It is actually a dam. I can't see the public area going away, they just built some new bathrooms and pavallions. One couple just built a house behind the proposed property that is at least worth 100K. There is also a grass airfield that some folks fly into for the weekend. Brand new golf course 3 miles east. The land is in the process of being developed. They are going to put in asphalt roads. They guy I'd be buying it from has been going out there since 1948. He owns about 90 acres and is selling it off because of age and money. I met him through my car pool buddy, it's his father in law. Don't think I'd get screwed over on that deal.
[ June 04, 2004, 03:49 PM: Message edited by: Schmoe ]
[ June 04, 2004, 03:49 PM: Message edited by: Schmoe ]
Actually its not an investment but merely a financial transaction. Investments are considered building of new homes, buying new equipment for business and adding new inventory. To answer your orginal question , I think it would be a great idea if you plan on using it at sometime or another. I would not do it just as an "investment"
Good luck
[ June 05, 2004, 07:57 AM: Message edited by: goodoleboy ]
Good luck
[ June 05, 2004, 07:57 AM: Message edited by: goodoleboy ]
You should get in contact with a friend of mine, Barney Zick. He works alot with Robert Bruss, Wright Thurston and other real estate guys. I used to do work for him before I went into the military. www.zick.com
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