Is this a deal made in heaven or hell? (rental, expensive, value)

[Posh66]

Originally Posted by oregonwoodsmoke

I suspect buyers have been frightened off by all the legal issues. Verify that those are all resolved.

I would not buy unless there is a very strong HOA with strict rules and a way to enforce them. I would not like to build a beautiful house with a mountain vIew in an area where no one else had yet built and then have all the neighbors move on a mobile home and build sheds for their pig farm.

There are strict rules, but it's hard to guess if they would be enforced if someone broke them as there isn't anyone living there yet to speak of!

[davebarnes]

Originally Posted by mig1

This looks like the area in OP photo, other side of Kodiak Crescent, seems like a resort area, nice. Wonder what the lots are going for.
49.6970019,-115.99333

Sullivan Landing. https://twitter.com/urbanalpinelife
$100+K Housing crunch looming in Kimberley - Kimberley Daily Bulletin

Here is my question: if Sullivan Landing lots and Kodiak Crescent lots are similar in price, why not Kodiak as it is closer to the ski area?

[Posh66]

Originally Posted by davebarnes

Sullivan Landing. https://twitter.com/urbanalpinelife
$100+K Housing crunch looming in Kimberley - Kimberley Daily Bulletin

Here is my question: if Sullivan Landing lots and Kodiak Crescent lots are similar in price, why not Kodiak as it is closer to the ski area?

Kodiak Crescent has outrageous monthly fees for a pool and exercise room we don't want or need.

[Steve McDonald]

Originally Posted by elhelmete

I have seen this work where a developer "overshoots" an area by overpricing or a recession hits and he goes belly up...remaining lots sit empty for a while. The the market recovers or new developers price it reasonably and new buyers get the same lots for a fraction of the first buyers.

There's a big development up in the foothills near where I live. The lots are typically 1/2 acre and they were priced at $160,000. in 2008. They sold about 20% of them and most of them had houses built. Then, the recession hit and no more were sold. The price dropped down to $60,000. and they haven't sold many more.

But all the utilities were put in for the lots and the streets are public. There's some houses that have two or three vacant lots next to them. I'd prefer that, myself, but it might narrow the field for prospective buyers, if the houses were up for sale. If you do buy and build there, plant a lot of big trees and shrubs, as those sparse natural spruce trees make the place look pretty barren.

I'd say that the key element to buying a lot in that development in B. C., is about the utilities and ownership and maintenance of the streets. If they are all in place and connected to dependable sources and the streets are public, that would be a big, positive factor to buy.

[foundapeanut]

Originally Posted by historyfan

The US dollar to Canadian dollar exchange is favorable. This is not always the case.

Checked just now $1 canadian to 78 cents US, is better than it was 2 years ago. But still not one to one like it was about 6 yearas ago, when oil was rushing out of Canada.

I would not touch this development with a 10 ft pole. Might not be hell, maybe pugatory. Where you'd be stuck forever.

Too risky this early. Now if you have the money to lose (and some people do) on something like this, go for it.

[loves2read]

Originally Posted by Brandon Hoffman

I recommend you finding a local real estate expert and consulting with them on it. They'll be more familiar with your risks.

I am in the US--Texas to be exact
I agree with this post--and would suggest getting more than one opinion--
Talk to a couple of bankers in your area who do mortgages for land investment

Personally we are in development in town midway between Dallas and FTW TX--not out in the country by any means--
This development was on patch of "infill" land that a long-time area developer had bought years before and just let sit--it was pretty unattractive land being on top of hill with lot of elevation--
It would be expensive to develop with any significant number of homes/streets because of dealing with the elevation transitions--so he knew the COST of the homes had to justify the expense---but he had other develops he was doing so I guess that cost helped offset the profits from the other developments--he was a canny guy and did lot for local communities and made himself a lot of money so he didn't suffer...

He probably owned it for more than 10 yrs (paying taxes on undeveloped land the while) so it WAS a loss to him from a cash standpoint during that time...
When he began developing, the area was starting to see uptick in home prices and people were wanting NEW homes close to the artery that feeds into FTW and Dallas (Airport Frwy)--vs moving to new developments with long commute times in areas like Keller or Haslet or Roakoak--towns that don't mean anything to you but are known to people looking for medium priced homes in good ISDs...

So he started development, cleared the land, put in the roads and city utilities, started to sell some lots to builders (semi custom local builders vs tract developer) and BOOM--Twin Towers went down--
BIG effect on economy here even though we were not threatened really but certainly slowed aspects of life like buying new home with higher price tag...
Some builders bought lots/built homes but did not move as quickly as anticipated before 9/11

We ended up buying a home built by original owners that was about 4 yrs old--so house is about 15 now--but development is older still--one of the first lots sold/built is on our corner it is probably 5 yrs older than our house...
There were still vacant lots open for building until last year--as of now we finally have no vacant lots--
There were many foreclosures from builders during and the 08 RE fall eventhough DFW as whole did fairly well compared to other parts of the country...those foreclosures impacted
the perceived desireability of the area and the cost appraisals--even though some could be set aside--when the only homes SOLD are foreclosures in your neighborhood it is difficult to get valid appraisals...

AND we were some of the most expensive homes in our town because of the new aspect--
Land/older homes in our area did not see the price increases that some other areas considered more desireable did over the past 15 yrs...and because our ISD is considered second tier (only 2 in top tier and homes in those are at least 1/3+ more $$)...

So why this long story--
You have to decide if you are buying for the end investment or for the pleasure living in that spot can bring--
Yes--everyone wants to make profit if/when they sell their home but there is no guarantee even if you buy in area where there are not the factors you list...
We bought our home for location, privacy in backyard (backs to strip of city park land), general floor plan, and because there was less competition in this area than in others w/higher prices and supposedly better schools...

Personally I would consider more what the restraints and provisions are that protect any property owner in that development from buy land/building what is likely an expensive home--and then getting a neighbor who brings a blighted presence to the neighborhood---
What are the deed restrictions/CCRs that owners must follow--
How do you as an owner protect yourself from neighbors that are more negative than positive
In the US we have HOA--home owner associations that often have lot of power to determine factors like that even if the land might be more rural than urban under a city's guidelines...
What are you LEGAL protections in dealing with neighbors say who might like to shoot guns on their property or run a business or park RVs for relatives or have parties that last until 5AM and require several police calls...
Just to name a few problems my past/current neighborhoods have had to content with

[jackmccullough]

I just had another thought about this. It seems that there are plenty of lots for sale in this development, and will be for some time.


If the OP buys now and lots go down in price doesn't that mean that in the future when the OP wants to sell the OP's property will be overpriced compared to the market?


I don't think I'd want to be in that position.

[davebarnes]

You have analyzed this lot alot.
Buy it.

[foundapeanut]

Hire a real estate attorney. Pai him an hourlyrate.

Never hire anyone for advice that will make money if you shoul buy - yeah they will tell the truth

[emotiioo]

Originally Posted by foundapeanut

Checked just now $1 canadian to 78 cents US, is better than it was 2 years ago. But still not one to one like it was about 6 yearas ago, when oil was rushing out of Canada.

I would not touch this development with a 10 ft pole. Might not be hell, maybe pugatory. Where you'd be stuck forever.

Too risky this early. Now if you have the money to lose (and some people do) on something like this, go for it.

Agree and could not have said it better. Who cares about the view? All I see in that pic is the need for a good snow remediation service...

There's a reason these lots are sitting and it's likely going to take someone who has very deep pockets to turn this around. Is that you op? If not run the other way.

(And why are there so many threads recently about undeveloped land? Don't people understand that this is probably the riskiest investment for any dabbling homeowner? I can't tell you how many times I have known someone who bought a plot of land to build a dream house, sat on it, and then sold it a decade later for pennies on the dollar....)