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I have 34 acres of land in East TN, got about $170,000 into it, 26.5 & 7.5 acres. If I sell the small piece at $39,900 and the other at $144,900 I'd break even with realtor fee's or make a few thousand. Should I do this or hold the paid for land as an inflation hedge. Or sell and what?? Gold, rental units, a bigger house that'd be paid for?
Any advice. I figure the current disinflation will end and big time inflation to take effect within 12 months. Any advice is appreciated.
But seriously, without knowing anything about the land how the heck would anyone here have useful input? What makes you think that the land is going to find a buyer before the inflation storm hits? How long is the inflation storm going to last? Will it effect all asset classes? Would the price of the land benefit?
What is the rest of your financial picture like?
How old are you? What is your cost basis for the land?
But seriously, without knowing anything about the land how the heck would anyone here have useful input? What makes you think that the land is going to find a buyer before the inflation storm hits? How long is the inflation storm going to last? Will it effect all asset classes? Would the price of the land benefit?
What is the rest of your financial picture like?
How old are you? What is your cost basis for the land?
So many questions...
I'm 42, breaking even on the land, yes inflation is going to kick in, see what the dollar is doing (down) Gold (up), what else is a few trillion per month spent amongst friends is going to wind up with (inflation).
All assest prices should go up, but in worthless dollars, meanwhile disinflation is still working it's magic (lower prices on assets).
So keep non-income producing land or buy appreciating gold (in bubble which could pop) or buy income producing properties (which will deflate in price over next year or so).
As to crystal ball, none required, even an idiot could see the housing bubble from 2004 thru 2007, but this idiot (saw housing bubble) was not smart enough to benefit from the crash of 2007-2009. Now what, how to benefit from the inflation?
Hey Tony, you're a smart guy and I think that you already know what to do, but for fun, I'll throw out my thoughts !
I've read 1 or 2 of your posts rather recently, but I haven't been stalking you lately to know if you mentioned any of these issues. How does your wife and son feel about living where you're at currently (both state, city and house)? How much longer can the 3 of you take living in a smaller home? IMHO, it does not matter how much money you've got if there is no one to share your good fortunes with, so I would keep their opinions/needs in mind ! An answer to these questions can also help with advice from other forum members !
My 1st suggestion is to test out the market and see what kind of responses that you get? Talk to a respected Realtor who specializes in land to see what the activity level is. Post for free on CL (Craigslist) and see if any NON bottom feeders are interested in making you an offer. I only say this because it seems to me that this is what CL has turned into in most places - scammers and bottom feeders !
If you get a live 'fish' and it (the offer) looks good, then to me, that's a sign to grab it and sell . Then find the BEST house (ie. the home that would be the PERFECT match for your family should you decide to stay put in the area and could buy it in a yr or two at FMV or below) to rent and move in.
I hear Congress is working on something to help renters to not get kicked out if the home they are renting is foreclosed upon, and this is something I would try to take advantage of myself ! Google the subject if you are not familiar with what I'm talking about.
Now what to do with the sale proceeds will cost you extra dinero! My FREE advice involves a mattress and a fire safe box until the market shows some real signs of recovering or you and DW find the spot that you both want to settle down in for the next 10+ yrs!
Best wishes to you and your family on your decision!!!
Quote:
Originally Posted by Tony1790
I'm 42, breaking even on the land, yes inflation is going to kick in, see what the dollar is doing (down) Gold (up), what else is a few trillion per month spent amongst friends is going to wind up with (inflation).
All assest prices should go up, but in worthless dollars, meanwhile disinflation is still working it's magic (lower prices on assets).
So keep non-income producing land or buy appreciating gold (in bubble which could pop) or buy income producing properties (which will deflate in price over next year or so).
As to crystal ball, none required, even an idiot could see the housing bubble from 2004 thru 2007, but this idiot (saw housing bubble) was not smart enough to benefit from the crash of 2007-2009. Now what, how to benefit from the inflation?
Hey Tony, you're a smart guy and I think that you already know what to do, but for fun, I'll throw out my thoughts !
I've read 1 or 2 of your posts rather recently, but I haven't been stalking you lately to know if you mentioned any of these issues. How does your wife and son feel about living where you're at currently (both state, city and house)? How much longer can the 3 of you take living in a smaller home? IMHO, it does not matter how much money you've got if there is no one to share your good fortunes with, so I would keep their opinions/needs in mind ! An answer to these questions can also help with advice from other forum members !
My 1st suggestion is to test out the market and see what kind of responses that you get? Talk to a respected Realtor who specializes in land to see what the activity level is. Post for free on CL (Craigslist) and see if any NON bottom feeders are interested in making you an offer. I only say this because it seems to me that this is what CL has turned into in most places - scammers and bottom feeders !
If you get a live 'fish' and it (the offer) looks good, then to me, that's a sign to grab it and sell . Then find the BEST house (ie. the home that would be the PERFECT match for your family should you decide to stay put in the area and could buy it in a yr or two at FMV or below) to rent and move in.
I hear Congress is working on something to help renters to not get kicked out if the home they are renting is foreclosed upon, and this is something I would try to take advantage of myself ! Google the subject if you are not familiar with what I'm talking about.
Now what to do with the sale proceeds will cost you extra dinero! My FREE advice involves a mattress and a fire safe box until the market shows some real signs of recovering or you and DW find the spot that you both want to settle down in for the next 10+ yrs!
Best wishes to you and your family on your decision!!!
Thanks for the reply,
I've been advertising on craigslist, have had the land with a realtor for quite some time. Lots of verbal, maybe offers, but so far only one that actually put it to paper with the realtor and that was a 55 cents on the appraised value offer.
The wife and kids both would rather leave the area (TN) I kinda like it here, but they would rather go back to WA state.
The 7.4 acres was listed at $59,950 now I've cut it down to $39,900. While I fear inflation spiraling out of control at some point soon, my immediate problem is a dearth of buyers with money that can and will part with the cash. Hopefully this parcel will sell quickly.
My albatross is the 26.5 acres, too big for most people to buy as a single home lot and not enough road frontage to divide into multiple lots. Lesson learned on that one the hard way, was new to TN rules and had listing and buyers agents less than truthful on the facts. Oh well, it's my turd now Just need to get rid of it and move on I suppose, this one will be a loss for sure, I'm too cash poor now to build for cash and too credit poor to qualify for a loan to build, so that leaves a sale.
I'll get my land sold, but may have fewer dollars to play with afterward and the next step will surely be my last, take whatever dollars I get from a sale, and buy a home to live in or forego buying and rent, then buy gold, stocks, or whatever and wait out the economy. The crystal ball is kinda cloudy and my Magic 8 ball just told me he's out of answers
Selling my previous homes into the rising bubble was an easy call, even for someone as dim witted as me, but what to do now is less clear.
I was taught in my GPS surveying classes that you need to be very, very careful buying land in the mountains. Besides the obvious fact that much of it is unusable, my understanding is it is highly-sloped property is surveyed and measured in a way that can be misleading in terms of acreage.
Anyway, about real estate as an inflation hedge; I've been tossing around the same idea. I'm operating under the assumption that real estate will not be an inflation hedge. The way I see things, real estate prices are mainly a product of peoples' incomes. So the only way real estate can be an inflation hedge is if incomes rise along with inflation.
I have trouble seeing how our economic state, combined with our policies, will lead to income growth. Even in the event that we have income growth, it seems that interest rates would then be under pressure to rise.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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Quote:
Originally Posted by Tony1790
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So keep non-income producing land or buy appreciating gold (in bubble which could pop) or buy income producing properties (which will deflate in price over next year or so).
Income producing property in an inflationary period should produce more income. If prices rise, rent should also follow suit in most circumstances. More income in an income producing property should translate to a higher value. Tangible assets do better in inflationary periods than paper assets.
Bare land as an investment probably is only going to keep up with, or slightly trail, inflation. The only reason to buy land is if it is in the path of progress, you're able to add value to it by getting it entitled to a higher use, or you can actually use it for some purpose like growing crops.
I think he was asking if it made sense to have a "fire sale" and slash his asking price.
Without knowing about the potential for the property to become more valuable, as DMensha hints at, it is too difficult to predict.
I have a funny story from a looooong time ago. Way back when I was a kid my dad had business associates that were developers. One of these developers owed my dad a substantial debt. The developer had an "asset" of raw land that he offered to my dad to settle the debt. At the time my dad NEEDED cash for his business and the land would have done him no good. In subsequent years the areas around that parcel became developed and the developer eventually sold to strip mall developer. I drive by that mall often and sometimes there are LOTS of vacancies and other times the store fronts seem full. The income stream must vary wildly. If the firm that developed the mall sold it to REIT at time when it was fully leased they probably made out great. If they have to pay for the upkeep and improvements that they use to entice new tenants it is a drain.
Very hard to make money year in and year out even with income producing property...
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!
you lately to know if you mentioned any of these issues. How does your wife and son feel about living where you're at currently (both state, city and house)? How much longer can the 3 of you take living in a smaller home? IMHO, it does not matter how much money you've got if there is no one to share your good fortunes with, so I would keep their opinions/needs in mind 
! An answer to these questions can also help with advice from other forum members 
!
are interested in making you an offer. I only say this because it seems to me that this is what CL has turned into in most places - scammers and bottom feeders 
!
! Google the subject if you are not familiar with what I'm talking about.
! My FREE advice involves a mattress and a fire safe box until the market shows some real signs of recovering or you and DW find the spot that you both want to settle down in for the next 10+ yrs! 
Just need to get rid of it and move on I suppose, this one will be a loss for sure, I'm too cash poor now to build for cash and too credit poor to qualify for a loan to build, so that leaves a sale.
