Is land still a a good investment?

[mommyof4]

I have an opportunity (I think) to purchase some land adjoining our property. It is a two acre apple orchard assessed at 10K, but I think I can purchase it from my in-laws for about 8K. I don't have any specific plans for the property right now, but it has good road access and could easily be zoned residential if someone wanted to build a house on it.

What do you guys think?

[Seeker]

I have an opportunity (I think) to purchase some land adjoining our property. It is a two acre apple orchard assessed at 10K, but I think I can purchase it from my in-laws for about 8K. I don't have any specific plans for the property right now, but it has good road access and could easily be zoned residential if someone wanted to build a house on it.

What do you guys think?

Land (empty lot?) is only a good investment if the gains outweigh the losses. Unused land without a goal in mind, can be viewed either way. But then again, it's land you are familiar with and know the history of.

If you don't need the 8k for anything foreseeable, it's a plus to grow your property (ie extend the boundaries) if you intend on staying there anyway.

The costs incurred will be additional property taxes, and if you later decide to sell to someone whom would like to put a home on the property, then you can usually come out ahead. Even if you don't sell, it still might be useful to grow your property.

I'd take the worse case scenario and see if the costs outweigh the benefits and decide from there. It really depends on you and your goals/needs. Even 8k can be useful in other ways and it's up to you to decide whether to tie it up in more property.

[yorkinvestmentreport]

$8K for 2 acres? Where is the land located, on the North Pole?? :-) Joking aside (and not knowing anything about the property), I would say go for it. 2 acres here in the Northeast can easily go for $100K - $200K. I know it all depends on location, but it seems like it would be worth the price if someone is able to build a home on the lot.

[Joan.of.the.Arch]

I would think a two acre orchard would actually earn money if the trees are taken care of. You can also look at it as an agricultural operation, can't you? Personally, at that price I would jump at two acres with orchard anywhere within 400 miles of me. Having it right next door would be ideal. But then, one of my dreams is to keep a tree nut farm and a small(er than the one you speak of) orchard. I would not be looking at it for re-sale.

Is population growing in your county or surrounding counties? That would be an important factor in whether you might ever make money on a re-sale for building. Um, with four kids, perhaps you would want to hold it for possibly one of them to build on when they are grown. I just cannot imagine any agricultural land anywhere in the country that is not worth well more than $4000 per acre.

[mommyof4]

$8K for 2 acres? Where is the land located, on the North Pole?? :-).

Close- NW Iowa!

[yorkinvestmentreport]

Close- NW Iowa!

I have to move from the Northeast

[mommyof4]

I have to move from the Northeast

Average land value in Iowa is about $4400 per acre, depending on slope, zoning, etc. I didn't know it was so expensive in the Northeast. Tell you what- I'll buy it for 8K, you purchase it from me for 10K, and then I'll make a small profit, and you get a good land deal (comparatively), OK?

[Maxwell76]

Close- NW Iowa!

What part of NW Iowa? I own property in NE Iowa (Black Hawk County to be percised). It's an empty corner lot where our old house once stood.

[mommyof4]

What part of NW Iowa? I own property in NE Iowa (Black Hawk County to be percised). It's an empty corner lot where our old house once stood.

Plymouth County.

[yorkinvestmentreport]

Average land value in Iowa is about $4400 per acre, depending on slope, zoning, etc. I didn't know it was so expensive in the Northeast. Tell you what- I'll buy it for 8K, you purchase it from me for 10K, and then I'll make a small profit, and you get a good land deal (comparatively), OK?

Haha, yeah, land prices here are literally out of control (and those prices are now after the declines). High taxes, cold weather and inflated standard of living prices, that's the Northeast for you

[leonoratisdale]

Re: Is land still a a good investment?

Hi,
Land has been the only consistently increasing investment, the Stock Market, Banks, Bonds, Precious Metals, Antiques, Art and Foreign Currency have all had their highs and lows, but land has just continued to rise in value, and nothing shows that this will not continue.

[Joan.of.the.Arch]

Mommyof4, a tiny piece of land from which an old chicken coop turned small home (!) was removed four years ago has an asking price of $60,000 in my inner city neighborhood. It is under 1/20 of an acre! Just mentioned for a humorous comparison.