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Originally Posted by will76
Yes but it depends on how you plan on developing it. He was mentioning rentals. If he was to buy rentals or build them, you not only make money from it but that land also appreciates too. You need to figure in your profit+ apreciation of rental property vs what you hope raw land will appreciate, minus interest lost of the money you spent on it, property tax, upkeep, etc.
You can always tear the rentals down, 10 - 20 years from now and build on your land if you want to, at least it was income producing instead of sitting there costing you money.
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Definately Will - nothing wrong with that, especially if you dump the rental management on to a manager.
A lot of that stuff really depends on the specific property - that often "speaks" for itself as to the possible best avenue - depending on location, local facilities, roads blah - plus, as you say, whatever local property taxes are applicable.
Got to say - I'm no "expert" on property or land and have not one clue about average capital appreciation in what could be described as the "conventional market", tho got a couple of patches of land in "exotic locations" which is probably more of a niche market than anything. One is *very* unique in that it has some features which would justify high-value, low density homes and already has planning permission for 200 homes. All of this stuff is appreciating at an average of 50%/year - tho that's not unusual for the area which seems to be averaging 40-60% annually. I can't say, but suspect that is kinda on the high side for land capital appreciation - but, again, even assuming Sleazy squeezed out an extra 25% on appreciation - that is kinda OK to cover costs. If his proposed project area is on a lakeside - sounds even better.