Monthly Archives: August 2011

Want to know why investing now as opposed to in the future is going to make you money?  Simple.  Supply and demand.  When I started selling online there were about 1200 land listings on eBay.  That was 10 years ago.  At the market peak in 2006 there were about 3000 listings.  Today, there are about 750.  Demand has diminished considerably and as a result prices have plummeted below 50% or more than what they were.  Land sellers are exiting the market as their land doesn’t have enough value for them to sell it.  Nothing else has changed with the land just the fact that if people don’t “need” it now they don’t want to spend money on it.  I’m the same way.  I used to spend money unconsciously from meals during the week to high-priced gadgets I thought were cool  Those days are long gone.  We budget.  We plan.  If it has nothing to do with our survival or our kids happiness we make a note of it and think well that would be nice to have one day.

Land is a commodity that unlike everything else will always last.  My kids and their kids and their kids will own and enjoy my land investments one day.  They won’t even recognize my first generation iPad.  The question to ask are, “Am buying at the right price?”  “Will I or my kids make money on this investment one day?”  “Will we enjoy it beyond it’s material investment?”  Given today’s prices and the low demand for land now is the time to jump in with both feet.  It’s hard to see now, but one day land investments will be scarce and the prices will rise again as people will always have a lust for something they can touch and experience besides a stock certificate or savings bond.   Plus, as the urban centers continue to grow more congested and less friendly, people will always have a yearning for a simpler homestead away from the noise, pollution and societal ills.  And they will pay dearly for it.

I know its self-serving being a land seller to urge you if you’re on the fence now to acquire land, but I’m doing it myself and for my family now because I know the prices are just too good to pass up.

 Investing in raw land online these days is very tough.  First, how do you know if the seller really owns the property?  Then, if they do own the property, how do I know the title is free and clear of any liens or encumbrances like back taxes or an IRS liens?  Furthermore, if the Seller is honest, what are my reasons for owning this land?    Here are the 3 questions I ask myself before investing in any land:

1.  What is compelling about this property?

Are there mountain views?  Is it near a lake or major body of water?  Is it private?  Is the weather beautiful most of the year?  Is it near outdoor activities that I enjoy like mountain biking, hiking, riding quads, horseback riding, etc.   Do I get a little imaginative “rush” thinking about the possibilities I would have owning this property?   Basically, if I don’t find it compelling odds are neither will anyone else.

2. How difficult is it going to be working with the local Planning & Zoning authorities to accomplish what I want to accomplish on this parcel of land?

Some counties are easy to deal with and even helpful.  While other counties make it as difficult and as frustrating as possible to do anything you want on the property.  I always call Planning & Zoning first before acquiring any piece of property to learn about the restrictions, future growth in the area and pending developments.  What are the County fees to get a building permit if I want to build?   What is the paperwork process and timeline for permit approval?  What if I just want to park my RV on the land?  Is that cool?  If so, for how long?   I typically shy away from anti-social planning and zoning Counties to save myself the brain damage in the future.

3.  What are the holding costs associated with the land?  What are the annual taxes?  How often does the County re-assess the land?  If it’s often what has been the historical tax inflation?  Is there any type of Property Owner’s Association that have maintenance fees and various other rules?   I don’t want to own land that is going to nickel and dime me every few months with taxes and fees.  Even if the community is pristine and fantastic, I just would rather have something a little less expensive to maintain, but that’s just me.  You may like the community and its amenities and feel like you’re getting value for those fees.

Once those three questions are answered then you can begin the due diligence process and being certain there aren’t going to be any surprises with your land acquisition.

Let me know what questions you ask yourself before buying property.

 
Why is Nevada property so special?  Why not invest in California, Wyoming or Montana?  The reason you should be especially keen on Nevada is because:

In Nevada there is no personal or corporate income tax, no inheritance or gift tax, estate tax, and extremely low property taxes.
Despite the hit Nevada has taken economically, Nevada is the fastest growing state in the U.S. for the last fifteen years.  People love to sin and Nevada let’s you hit all the vices without judgement or punishment.

I have a perfect 71 acre parcel ready to be taken down.  See the details here.

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