I want to buy some land, need advice?

I have seen some land that i want to purchase as an investment only. I do not intend on building on it even though it is freeold with 21 plots. Im just going to 'sit' on it untill a developer comes along!

What points do i need to consider? Im going to see the agent tommorrow what questions should i ask?

This is my first plot. So im a novice.

How much is land in the area selling for? What is the current and future zoning? How much are the taxes? Are there any limitations on how long the land can sit before contruction must begin?

1st thing to consider in all investments, real estate, stock market, CD's etc, is what is going to provide me with the best rate of return and how long must I hold this asset until I can realize the growth.

I don't know what market this is in, but if the area that you are looking at is a growing community, try to determine the length of time that you will be sitting on the investment before selling it to a developer.

Also, make sure the property "perks" which means residential housing can be built on it. You could end up sitting on an investment for a long time an losing significant money, not only on the property but also the opportunity costs of what you could have done with this money.

Another thing to consider is look at other markets around the country that are similar to where you are located and see what is going on in the real estate and employment markets. You could have the best opportunity but if the mode swings to growing the same industries in other markets, then you could lose again.

Good luck and hope this or what ever investments you choose work out for you.

I think some important questions relate to the zoning of the property...21 plots zoned how? Is it residential, commercial? You probably alrerady know this, but it's not clear in your message.

You need to know that there are no real tax benefits to holding raw land without improvements, so you need to heavily figure that into your strategy, as I invest in real estate for its intrinsic value, but also for the tax benefits I reap.

Other questions I would ask relate to the growth prospects for the market you are investing in... are you in the path of growth?...are you aware of any major commercial or residential developments in the immediate area...new highways. airports, factories etc? All of these things will play into the calculation of a reasonable holding period that will get you a reasonable return while you wait for a developer to come along.

Which leads to the question of...why would you wait for a developer? Why not pursue development immediately with a partner/builder. This is of course dependent on your specific market conditions and timing, but why sit on a non-deductible investment for a long time, when you could turn a healthy profit in the next 2 years developing the property.

This may be an excellent property at an excellent price, but remember, if you have money to invest in real estate, raw land is generally not the first place to start. There are better investments for the novice which yield shorter term benefits while also building long term wealth.

There will be others with additional good questions, but for me it's all about the investment returns and how quickly I can realize those returns in addition to the tax benefits.

Regards,
Robert Noakes
Real Estate Investment Consultant
Sr. Mortgage Planner
415.652.8112

sounds to me like you should be seeing your Bank for advice NOT the Agent

Hey above- the the agent is the expert on land and real estate not the bank.

I agree with the first commentor- also find out with the city and or thru word of mouth and realtors if there are any upcoming developemnts close by like malls, homes, office spaces or condos.