I've bought some reasonably priced lots and now I'm a bit concerned?

The lots (4) are comfortable size in an already 1/2 developed sub division in a Mid/East Coast state in a desirable rural community...the complete homes sell for @170 to 180k and are considered "starter" homes...There is plenty of job-creation and community development with shopping areas starting to spring up in this area; however, I am starting to get concerned that this may be the wrong time to actually start building because the selling prices have dropped .... this is not a huge investment for me -in fact it is a major part of my retirement plan , so I don't need the money immediately and the original goal was to build, sell and re-build ( roll-over ) for about 20 years.....Any suggestions would be appreciated...Unfortunately the rental rates are not great either, but they will cover the costs of the loans at least... Thank You....

If you've purchased the lots with a mortgage, than you are paying for the lots with your own money in the long run which is little better than a savings account, but if you can build something that makes someone ELSE pay your mortgage for you, you are still making money even if the property VALUE is not increasing. In other words, your renters are buying your lots and the houses you built for you. Obviously, there is some risk involved because can you keep all four houses full with renters, will they wreck the place, can you make enough rent to fully cover ALL the costs involved?

On the other hand, if the lots are paid for in cash and you are not looking to take on the responsibility of a landlord per se, then the only holding expense that you have is real estate taxes. In this case, with a falling market, you should remember "buy low, sell high", in other words, when you see the market is starting to take a turn is when you might want to think about building as the costs should be cheaper at that moment. Once the market makes its turn, it takes quite a bit to turn again. A market is alive and has momentum so if you keep an eye out for the trends [not single sales, but trends] then you will see when that moment is. Build then, and then you should be selling the houses while the market is warming up/getting hot once again.

since it's only 4 lots, why not keep them and wait the market out. IT WILL RETURN.

Hi,if your in the UK I believe prices will rise.The same applies to other countries.Good Luck

I would also be concerned.

Lots are NOT a good deal today due to the fact that you can buy an existing home CHEAPER than you could build a new home for.

The cost of construction for homes have gone up big time.

Concrete, lumber, and wiring is more today than at the top in 2005 mostly due to the incredible demand coming from China.

Sit on the lots till the cost of construction and current inventory of homes levels out.