Purchasing a Land vs 2nd home (Denton, Terrell: houses, to buy, construction)

[rabbit33]

OP, you're late to the game, and you'll be paying premium prices due to the massive influx of people from other states into Texas.

The best way to find deals is to know where they are. Basically this calls for inside knowledge.

[ChristieP]

Originally Posted by escanlan

Of course that would explain the $12K/Acre asking price and would really need a deep dive to ensure it is worth even that.

That's the cheapest large tract of land around my part of Kaufman County right now. And yes, that's because the back part has power lines cutting across it, and there is also a creek on one side that does flood when there is heavy rain. It actually would be a poor choice for development, which is likely why it has only been used as a cow pasture.

Here are some other properties with more typical costs per acre:
https://www.realtor.com/realestatean...1_M92149-20208
52 acres off I-20 for $1,040,000

https://www.realtor.com/realestatean...1_M70237-57577
25 acres on a FM road for $885. Currently has a nice mobile home on it.

https://www.realtor.com/realestatean...6_M91651-12564
20 acres on FM 548 in Forney for $625k

OP, one very important thing to keep in mine when buying land for development is road access. You don't want to buy land that has poor road access, such as requiring a road easement, or where the only access is several miles down a County Road. Ideally, you want something that's close to an interstate or state highway, or even on a FM road.

[Leonard123]

I don't know about land, but you can buy a 20-40 year old house in McKinney for a rental. Such houses here are dirt cheap and abundant and popular with investors.

[ritholtz]

Originally Posted by rabbit33

OP, you're late to the game, and you'll be paying premium prices due to the massive influx of people from other states into Texas.

The best way to find deals is to know where they are. Basically this calls for inside knowledge.

Looks like there is nothing in my budget. i need to go with realtor who has very good knowledge i guess.

[ritholtz]

Originally Posted by escanlan

Even in farther flung areas you can count on around $25K+ per acre for anything that might be in the path of development even if development is a ways off but not WAY off. The closer you get to the path of development of course the prices are going up. I've spoken to neighbors whose properties are near where developers are buying for hold and my neighbors are all looking at $50K+/Acre for unimproved pastureland with electrical and Co-Op water at road frontage.


Realtor.com is not the only site listing land and there are others whose listings are not on realtor.com. If you Google you'll find the various sites out there. Also many parcels never seem to hit the listing sites near development as Investors have been going direct to owners before they even consider listing.


East of Hwy 78 was discussed in an earlier post. If you are willing to hold long term you can go farther out for slightly less cost land.

If anything listed for below $25k per acre, does it mean it is not desirable property? What about areas very north west of Denton (beyond 380).

[ritholtz]

Originally Posted by Leonard123

I don't know about land, but you can buy a 20-40 year old house in McKinney for a rental. Such houses here are dirt cheap and abundant and popular with investors.

I will look for preowned home listing around this area and get some understanding. Thanks

[rabbit33]

Originally Posted by ritholtz

Looks like there is nothing in my budget. i need to go with realtor who has very good knowledge i guess.

Well, that 6% isn't exactly helping your investment.

What you need to do is to be on the ground in an area where you're interested. Get to know land owners. Ask around if anyone's on the verge of selling. Form relationships to help you with word of mouth.

Most of the really good land deals don't even get to the real estate listing point. My wife and I have done this four times (three purchases, one that was offered to us but we decided against). All of them, word of mouth told us the properties were available; only one of the four was represented by a real estate agent. The rest were (or would have been, had we proceeded with the fourth) handshake deals.

Of course, an out of towner sailing in trying to buy up rural properties for investment and eventual subdivision and development probably isn't going to be the person potential sellers are going to be forthcoming with.

[rabbit33]

Originally Posted by ritholtz

If anything listed for below $25k per acre, does it mean it is not desirable property? ....

Depends on what it is and where.

Unimproved pasture wtihout town water or nearby electricity is way way different from a town lot with water sewer and an electric meter right there at the corner of the lot.

[ritholtz]

Originally Posted by ChristieP

That's the cheapest large tract of land around my part of Kaufman County right now. And yes, that's because the back part has power lines cutting across it, and there is also a creek on one side that does flood when there is heavy rain. It actually would be a poor choice for development, which is likely why it has only been used as a cow pasture.

Here are some other properties with more typical costs per acre:
https://www.realtor.com/realestatean...1_M92149-20208
52 acres off I-20 for $1,040,000

https://www.realtor.com/realestatean...1_M70237-57577
25 acres on a FM road for $885. Currently has a nice mobile home on it.

https://www.realtor.com/realestatean...6_M91651-12564
20 acres on FM 548 in Forney for $625k

OP, one very important thing to keep in mine when buying land for development is road access. You don't want to buy land that has poor road access, such as requiring a road easement, or where the only access is several miles down a County Road. Ideally, you want something that's close to an interstate or state highway, or even on a FM road.

i am seeing some lots going for less than $20k per acre. i guess these are not close to proper roads. Do you think, these tracts appreciate in value over the time? I am thinking, if it is better idea to put more into stocks.

[ChristieP]

Originally Posted by rabbit33

Depends on what it is and where.

Unimproved pasture wtihout town water or nearby electricity is way way different from a town lot with water sewer and an electric meter right there at the corner of the lot.

Absolutely. Most of the water supply companies charge around $1500 to put in a single water meter. Then you have to pay to have the actual water pipe run to the house, usually around $100 for 10 feet. It's not cheap, but it's still likely cheaper than having a well drilled.