Land What To Do Or Not To Do
I'm just wondering what everyone thinks of land??? the good the bad the ugly. I went to a new subdivsion that opened up selling 2-6 acre parcels. The area is a very up and coming area. I saw 2 lots that, I thought would be a good investment one is 2.6 acres sandwiched between 2 that are 2.9 but are selling for 17,000 higher. The one lot goes for 135,000 great views needs a well 300-600 feet down and a septic (horizontal) system. I also looked at another lot with ok views but was 3 acres for 80,000. I'm just wondering what everyone thinks for investment what are the good the bad the ugly with land deals? I also want to know what's the best bet for loans on land and the best way to go about it? I also might actually build on the more expensive lot myself. I would look at either flipping both lots in a span of 1.5 years or flip one and build on the other. I also am wondering do I have to pay hoa's without having a structure built they are 240 a year.[ Edited by mcq on Date 04/27/2004 ]
Keep in mind that the covenants may require you to start building by a certain date or length of ownership. Be careful.
Since the property is already developed I would guess that the biggest profit has already been made and if you buy the land you are likely paying retail for it.
There are some builders that do well by building spec homes but that should be left so someone who knows what to do.
The only reason I don't like land personally is that I have no way to cover the holding cost of the land. It doesn't create any income for me right now so I can't swing it.
GOOD LUCK
it is 220 house subdivsion there are only 12 homes up and there is no time table on when you have to build. I do know a person who bought one of his lots anf is now trying to flip it 8 months later for 18,000 in profit.
mcq,
What would the end product (house on its lot) sell for? What would be the cost of the well and septic? Are there any other horizontal improvements needed for either lot?
If the lots are in a HOA, I would suspect that liability for paying HOA fees occurs once someone takes title, but I think the definitive answer lies in the HOA documents.