Buying a plot of land for retirement

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dazed04106
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Buying a plot of land for retirement

Post by dazed04106 » Sun Mar 11, 2018 11:02 am

Hello all,

I am hoping you guys can provide me with some guidance and resources. My spouse and I are looking into buying a small plot of land to retire on. Retirement for us is probably in 33-38 years. I'm not sure where to begin on figuring out how to do this process from a boglehead's perspective. Any suggestions on what to know when buying land will be helpful.

Thank you!

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mhadden1
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Re: Buying a plot of land for retirement

Post by mhadden1 » Sun Mar 11, 2018 11:45 am

Gosh you may be a bit early. Many things can change in 30 years.

I have a friend who bought a lake lot and built a house about 20 years ago, while in his thirties. It's about 50 miles from his primary residence. He uses it for weekends and vacations and plans to retire there. It's the only place he ever wants to go - sometimes DW has other ideas. He has enjoyed it a lot thus far and so did not mind the mortgage and taxes and doing double home maintenence (very busy guy!) It will probably take about 10 more years to tell if things worked out completely like he hoped.
Oh I can't, can I? That's what they said to Thomas Edison, mighty inventor, Thomas Lindberg, mighty flyer,and Thomas Shefsky, mighty like a rose.

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Tamarind
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Re: Buying a plot of land for retirement

Post by Tamarind » Sun Mar 11, 2018 11:56 am

Fiancee's parents bought a lake lot in their 30s. Waited until they were ready to retire, sold their home and built a home to retire in. They are carrying a mortgage, but it's not cumbersome given their savings.

I think they made a good financial decision not to improve the lot or build on it until they were ready to move there full-time. That way if their plans had changed or it had become a financial burden they wouldn't have sink too much money into it.

We worried they would be isolated out there but they actually found a whole new set of friends among their new neighbors and are thriving. They do have to drive about 1.5 hours for anything other than basic groceries.

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Sandtrap
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Re: Buying a plot of land for retirement

Post by Sandtrap » Sun Mar 11, 2018 11:58 am

dazed04106 wrote:
Sun Mar 11, 2018 11:02 am
Hello all,

I am hoping you guys can provide me with some guidance and resources. My spouse and I are looking into buying a small plot of land to retire on. Retirement for us is probably in 33-38 years. I'm not sure where to begin on figuring out how to do this process from a boglehead's perspective. Any suggestions on what to know when buying land will be helpful.

Thank you!
Raw land is one of the worse investments on the planet (exaggeration :shock: kidding).
Because:
It has the lowest rate of property appreciation and predictability compared to improved lots (built on).
It does not earn money (unless you rent it out for some type of use).
It costs money to own (insurance, maintenance, etc) yet doesn't earn.
Etc.

For such a long term horizon, suggest buying a property that is a sound business investment so that you can always recoup your costs/sell at any time, and so that you are not "stuck with it" and it becomes a "negative" financial drain.
The life and financial condition you are at now will most likely be completely different in 33-38 years, and with that, your view of what type of land you want to build your retirement home on. So there's more risk this far out.

That being said, I know many a couple who purchased lot's in various retirement destinations early on which gave them a choice when the time came to retire. They had bought the properties, by then, for a "song" and did well both selling the one's they chose not to use and on the lot they eventually built on. But, I also know many a senior couple who are still trying to sell vacant land they bought 30 years ago. Some have the land in trust for "hares" because they don't know what to do with it. And, others are somewhere in between that.

Suggest re-evaluating your thoughts on this every year or 3 or 5 along the way to that 38 year mark. Why tie up the funds when you can add to your Bogle 3 fund portfolio, put your money to work, and end up with a larger nest egg to buy the home of your dreams when the time comes.

OTOH you may find the ideal dream lot next to family and relatives in a wonderful community that you always wanted to be forever. . . . and be in a great financial position to hold it long term. . . . in that case. . . buy it.

mahalo,
j :D

THY4373
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Re: Buying a plot of land for retirement

Post by THY4373 » Sun Mar 11, 2018 12:13 pm

I would wait honestly. Almost everything will change in 30-38 years. My life has turned out almost 180 degrees different than I thought in my 30s (I am now in my late 40s).

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Pajamas
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Re: Buying a plot of land for retirement

Post by Pajamas » Sun Mar 11, 2018 12:25 pm

dazed04106 wrote:
Sun Mar 11, 2018 11:02 am
Hello all,

I am hoping you guys can provide me with some guidance and resources. My spouse and I are looking into buying a small plot of land to retire on. Retirement for us is probably in 33-38 years. I'm not sure where to begin on figuring out how to do this process from a boglehead's perspective. Any suggestions on what to know when buying land will be helpful.

Thank you!
You would almost certainly be much better off investing the money you would spend now on land needed in thirty to forty years. At that point, you will probably be able buy the land and build a house on it for the same current amount.

make_a_better_world
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Re: Buying a plot of land for retirement

Post by make_a_better_world » Sun Mar 11, 2018 1:14 pm

If you are planning to live on the land from now and continue living there for the rest of your life, then it would make an excellent investment financially.

If you are planning to hold it and start using it after 30 years, then the money you have now would be much better served in an investment that will bring you higher returns than raw land. I have held raw land for time periods of 1-3 years before building commercial structures. Sometimes a firecracker stand or BBQ truck or someone that wants to advertise might pay you some rent income depending on the location. It won't even cover the property taxes. The only way you could gain is if property values increase AND you sell the land. As the value increases so do your taxes, so the land will be a loser financially, especially since you wont want to sell it.

StealthRabbit
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Re: Buying a plot of land for retirement

Post by StealthRabbit » Sun Mar 11, 2018 1:17 pm

1) wait if possible (things / priorities / objectives change and raw land is a liability / drain on finances and time / energy)
2) if you find the perfect location / lot... then buy ONLY at the right price. (NEVER over-pay for property, it is TOUGH to resell)
3) consider making it cash flow while 'waiting'. Renting out a dwelling, retaining rights to maintain and occupy a guest (build a shop with apartment and RV hookups / put a Mobile home on and rent out) to be removed later.
4) Consider buying a distressed 'existing' property (only if it meets your objectives) I.E. Trashed or abandoned home
..... a) saves you $100k+ and yrs of 'development' ...comes with septic, well, road, electrical, buildings, driveway, landscape, permits, fences,
.... b) If you don't like the existing structure / or it is trashed... a dozer or excavator (trackhoe) costs $250/ day to rent
5) having a Shop with living qtrs is very fast to build and very handy to accumulate items for future house, makes nice guest house / additional living space once home is completed.
6) Always have multiple living spaces at every house (if possible). Aging parents, boomerang kids, need for caregiver, guests, house swapping, extra income, a place for house sitter if you are doing extended travel. (extra 'doghouse' if you get into 'trouble'. ) :P
7) always buy the best view / access and cheapest property in a location
8) Never buy in a HOA or on a private 'shared' road.
9) only buy what you can sell for 110% tomorrow.
10) consider finding your own 'deals' (properties that are not listed for sale)

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TinyElvis
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Re: Buying a plot of land for retirement

Post by TinyElvis » Sun Mar 11, 2018 1:29 pm

Sandtrap wrote:
Sun Mar 11, 2018 11:58 am
Raw land is one of the worse investments on the planet (exaggeration :shock: kidding).
Because:
It has the lowest rate of property appreciation and predictability compared to improved lots (built on).
It does not earn money (unless you rent it out for some type of use).
It costs money to own (insurance, maintenance, etc) yet doesn't earn.
Etc.
“The land is the only thing in the world worth working for, worth fighting for, worth dying for, because it's the only thing that lasts".....Gerald O'Hara, Gone With The Wind.”

:)

ny_knicks
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Re: Buying a plot of land for retirement

Post by ny_knicks » Sun Mar 11, 2018 1:34 pm

Parents were in the position to buy a waterfront lot in an area they frequented for summer vacations in their mid-30s. Took on a mortgage to do it but had the assets to pay cash if they wanted.

Paid off the lot 15 years later and then just held on to it. Did nothing to it other than the yearly clearing to overgrowth down.

Recently built a house on that same lot to retire in their early 60s. Would likely have been priced out of the area had they not already owned the lot as property values went up significantly in those 30 years.

I am sure it could have easily gone the other way where the lot did not appreciate in value and they were stuck trying to sell something that would never sell.

heyyou
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Re: Buying a plot of land for retirement

Post by heyyou » Sun Mar 11, 2018 1:40 pm

Beware of sloped ground and the drainage that comes with it. We bought the next to last empty lot in the neighborhood, and it was still available because it was all sloped. Since then, we have spent to mitigate the slope. First there was dirt work to level some of it, with the filled part covered with purchased loose granite to avoid the mud, then retaining walls, and buying a small tractor since I couldn't push a fully loaded wheelbarrow up the driveway which we eventually paved. That said, we like our elevated home site, but the total cost was more than if we had more knowledge beforehand.

The last lot in the neighborhood was flat and grassy because..............it was in a low spot that only flooded after severe rain storms. The swarm of mosquitoes drove us off of it on a summer afternoon.

If and when you do get your land, consider putting in your septic system and water well sooner than later. Regulations can change over long periods, but existing improvements are grandfathered in. In my state, new wells now have to be a hundred feet from septic lines, and vice versa. The old rule was 50'. In some places with narrow lots, the empty lots adjacent to a water well are now unusable (no septic can be installed) due to the new ruling that was not in effect when the lots were initially platted. Owning the vacant lot was not enough, the well or septic had to be installed prior to the change, regardless of whether there was a house being built or not. Those improvements sound expensive, but were only $3000+ each, in my rural area in 2004. Check on your neighbor's well and septic positions before buying your land. They could limit where you put yours.

Consider what your future neighbors might do, when you are choosing a site for your home. Your neighbor can put animal pens next to your property line in some rural areas where those animals would not be allowed within town boundaries. They include cattle, pigs, horses, packs of hound dogs, and flocks of chickens including the roosters. Those people live in the country in order to have their animals, not for the quietness that you found so attractive. Do your own homework on the nuances of different rural zoning regulations instead of trusting the salesperson who is showing the property for sale.

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Sandtrap
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Re: Buying a plot of land for retirement

Post by Sandtrap » Sun Mar 11, 2018 1:57 pm

TinyElvis wrote:
Sun Mar 11, 2018 1:29 pm
Sandtrap wrote:
Sun Mar 11, 2018 11:58 am
Raw land is one of the worse investments on the planet (exaggeration :shock: kidding).
Because:
It has the lowest rate of property appreciation and predictability compared to improved lots (built on).
It does not earn money (unless you rent it out for some type of use).
It costs money to own (insurance, maintenance, etc) yet doesn't earn.
Etc.
“The land is the only thing in the world worth working for, worth fighting for, worth dying for, because it's the only thing that lasts".....Gerald O'Hara, Gone With The Wind.”

:)
Yes.
"Land and Power in Hawaii" by Cooper, Daws. Read when I was 13.
"Land is the key to all wealth". . . my grandfather.
j

adamthesmythe
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Re: Buying a plot of land for retirement

Post by adamthesmythe » Sun Mar 11, 2018 2:08 pm

There is a certain amount of due diligence that you need to do if you are going to build NOW. Since regulations change, it is pretty much impossible to predict whether a piece of land will be buildable in 30 years.

> "Land is the key to all wealth". . . my grandfather.

Maybe. But the value of a particular piece of land can go way up or way down, depending on what happens in the immediate vicinity.

Geologist
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Re: Buying a plot of land for retirement

Post by Geologist » Sun Mar 11, 2018 2:31 pm

TinyElvis wrote:
Sun Mar 11, 2018 1:29 pm
Sandtrap wrote:
Sun Mar 11, 2018 11:58 am
Raw land is one of the worse investments on the planet (exaggeration :shock: kidding).
Because:
It has the lowest rate of property appreciation and predictability compared to improved lots (built on).
It does not earn money (unless you rent it out for some type of use).
It costs money to own (insurance, maintenance, etc) yet doesn't earn.
Etc.
“The land is the only thing in the world worth working for, worth fighting for, worth dying for, because it's the only thing that lasts".....Gerald O'Hara, Gone With The Wind.”

:)
Somewhere I have a photo of a house on land in the Houston area that is now offshore because the land subsided because of groundwater (primarily) and hydrocarbon withdrawals. I also have many photos or maps of shifting coastlines. So I wouldn't say that "land is the only thing that lasts" because in some places, land certainly doesn't last.

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Watty
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Re: Buying a plot of land for retirement

Post by Watty » Sun Mar 11, 2018 2:33 pm

dazed04106 wrote:
Sun Mar 11, 2018 11:02 am

My spouse and I are looking into buying a small plot of land to retire on. Retirement for us is probably in 33-38 years.
A huge risk of doing this is that you might not actually be able to build on it when you retire.

I know of a situation when someone bought something like 4.8 acres but by the time they were ready to build several decades later there was a five acre minimum so they could not get the needed permits to build or a variance. None of the adjoining landowners were willing to sell them 0.2 acres and instead just waited for them to put the land up for sale at a distressed price since it was not a buildable parcel.

The rules for doing things like installing septic systems, wells, wetlands, and utilities are always changing. In some areas you may need a permit to even have a driveway that attaches to the main road that is on the edge of your property, and they will not always issue those permits.

When you buy a lot or raw land to build on the contract typically has a list of contingencies on you being able to get all the needed permits and utilities. Once you have a signed contract you may have to spend thousands of dollars right away to get all the needed permits and quotes but if you run into a big problem you can still get out of the deal.

jebmke
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Re: Buying a plot of land for retirement

Post by jebmke » Sun Mar 11, 2018 2:54 pm

mhadden1 wrote:
Sun Mar 11, 2018 11:45 am
Gosh you may be a bit early. Many things can change in 30 years.
We bought our current retirement home a year after I retired and that turned out to be too early.
When you discover that you are riding a dead horse, the best strategy is to dismount.

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mhadden1
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Re: Buying a plot of land for retirement

Post by mhadden1 » Sun Mar 11, 2018 3:21 pm

Oof. Tough situation.
Oh I can't, can I? That's what they said to Thomas Edison, mighty inventor, Thomas Lindberg, mighty flyer,and Thomas Shefsky, mighty like a rose.

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aspirit
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Re: Buying a plot of land for retirement

Post by aspirit » Sun Mar 11, 2018 5:01 pm

A good friend always wanted to retire to his family's cottage, it's oceanside. About 40 yrs later it's declared worthless by lenders thanks to the tide's & sea's movements.
:oops: He's still living there.

I too suggest you wait.

:| note my sigline.
Time & tides wait for no one. A man has to know his limitations.

GCD
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Re: Buying a plot of land for retirement

Post by GCD » Sun Mar 11, 2018 5:10 pm

My wife (when single and before she met me) thought she wanted to retire in the Spokane area. She looked at raw land there and the real estate agent actually advised her not to buy anything. He told her that:
1. a lot can change in the intervening years,
2. She was residing in San Francisco and he told her the appreciation on her SF home would be far beyond anything in Spokane so dump extra money into paying down her mortgage in SF and then buy what she wants outright at retirement time.

Astounding that she got such good advice from someone with a bias toward making the sale.

It turns out the guy was absolutely right on both points. You need to consider what the rate of return would be on other potential investments. You might be better off investing in stocks or something else with the money you would invest in the land and then buying something come retirement time when you know what your current (future) situation is.

As an aside, we didn't follow the above advice when it came to purchasing raw land for retirement and it worked out poorly. We recovered fine, but it was an expensive mistake. Too much to post on the internet. Read like half a dozen books before you jump in.

Jack FFR1846
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Re: Buying a plot of land for retirement

Post by Jack FFR1846 » Sun Mar 11, 2018 5:17 pm

You may change your mind.

My grandparents bought a couple lots in Florida in the 60s with the intention to someday retire there. They never did. My dad, uncle and 3 aunts inherited them. After years of trying to sell them for anything, they ended up selling them each for a dollar to the HOA. Both my grandfather and dad were real estate brokers. So even people who know better end up with worthless land.
Bogle: Smart Beta is stupid

simpleman1
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Re: Buying a plot of land for retirement

Post by simpleman1 » Sun Mar 11, 2018 5:34 pm

dazed04106 wrote:
Sun Mar 11, 2018 11:02 am
Hello all,

I am hoping you guys can provide me with some guidance and resources. My spouse and I are looking into buying a small plot of land to retire on. Retirement for us is probably in 33-38 years. I'm not sure where to begin on figuring out how to do this process from a boglehead's perspective. Any suggestions on what to know when buying land will be helpful.

Thank you!
Thank you for posting. I think this is a wonderful idea. Many of my colleagues at Hewlett-Packard in Oregon had a long-term and very specific retirement plan. Buy a piece of land in Seaside, Oregon and buy a piece of land in Mt. Hood, Oregon, with the goal of building houses on both. Fast forward 30 years and they did it and they now enjoy the best of both worlds (ocean and mountain living) What a wonderful experience.

jebmke
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Re: Buying a plot of land for retirement

Post by jebmke » Sun Mar 11, 2018 5:40 pm

aspirit wrote:
Sun Mar 11, 2018 5:01 pm
A good friend always wanted to retire to his family's cottage, it's oceanside. About 40 yrs later it's declared worthless by lenders thanks to the tide's & sea's movements.
:oops: He's still living there.

I too suggest you wait.

:| note my sigline.
Lot of areas near me that were dry land in the mid-80s when we started coming to the area on vacation. Some are permanently under water now - others are frequently underwater. Land is subsiding and water is rising. Apparent rise around here is 2X the actual rise. Some areas of the county if you rebuild a house (scrape down or fire, for example) you have to raise it 8 feet above MLW.
When you discover that you are riding a dead horse, the best strategy is to dismount.

3funder
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Re: Buying a plot of land for retirement

Post by 3funder » Sun Mar 11, 2018 5:47 pm

I would not do this.

Yooper
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Re: Buying a plot of land for retirement

Post by Yooper » Sun Mar 11, 2018 6:01 pm

With that kind of time frame you're in the driver's seat, a nice place to be. I'd be regularly looking around and keeping a list of places you like and the reasons why. Take a look at them, walk the property. Time permitting, I'd like to see the property in it's best and worst condition. Where I live the best is mid summer/early fall/mid winter. Worst is early spring and late fall due to everything being waterlogged and looking really rough.

Take your time, but be ready to pull the trigger when the time comes. And if after a few years something nicer comes along (because of course you don't stop looking just because you've bought something), feel free to sell it and buy something else. I think your wants and needs will change as you get older. Mine certainly have.

In my personal opinion you usually don't make money on vacant land except in unusual circumstances. So understand that if you pay "x" amount for something today, and pay "y" in taxes between now and the day you sell, you might only get your original "x" (or whatever average acreage is going for a the time) for the property. Don't sweat it.

I think you've got a good idea, and you may end up with a few properties by the time you retire. Figuring out which one you want to retire on might be the hard part...

MrPotatoHead
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Re: Buying a plot of land for retirement

Post by MrPotatoHead » Sun Mar 11, 2018 6:15 pm

You should check with the state and county (note I said county)for what type of stewardship programs they have. Often you can by a piece of land and get enough incentive to let it lay fallow for a set period of years that can make it a very attractive proposition. You can also combine that with plating trees for future harvest, let the land lay and accumulate payment sand credits and then look to harvest in 30-50 years. I have seen a few pretty sweet deals especially in crowded counties that are desperate to pretend they are green for political reasons. There are also mineral rights, utility rights, oil etc.
Last edited by MrPotatoHead on Sun Mar 11, 2018 7:13 pm, edited 2 times in total.

Point
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Re: Buying a plot of land for retirement

Post by Point » Sun Mar 11, 2018 6:16 pm

Agricultural uses are a big red flag. Check zoning so you understand what's allowed and what's limited. The elephant in the room moving forward for many jurisdictions will be marijuana cultivation. This brings with it pollen, smell, water usage, drainage/runoff, and herbicides. The smell of pot cultivation is really turning off some neighbors in Carpinteria where existing greenhouses are being converted from flower to pot cultivation due to market changes. Also think about traffic patterns with this type of ag usage. This is an evolving thing, but it could hit you and your investment if you choose poorly.

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rocket354
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Re: Buying a plot of land for retirement

Post by rocket354 » Sun Mar 11, 2018 6:36 pm

ny_knicks wrote:
Sun Mar 11, 2018 1:34 pm
Parents were in the position to buy a waterfront lot in an area they frequented for summer vacations in their mid-30s. Took on a mortgage to do it but had the assets to pay cash if they wanted.

Paid off the lot 15 years later and then just held on to it. Did nothing to it other than the yearly clearing to overgrowth down.

Recently built a house on that same lot to retire in their early 60s. Would likely have been priced out of the area had they not already owned the lot as property values went up significantly in those 30 years.

I am sure it could have easily gone the other way where the lot did not appreciate in value and they were stuck trying to sell something that would never sell.
Not sure what exact years we're talking about, but I imagine it's very rare that a plot of land outpaces the S&P500 over 30 years.

Going here, the S&P500, with dividends reinvested, went up by 1858% from 1988-2018, meaning one was left with 19.58X their initial investment.

Comparing that to San Francisco existing homes prices, which went from $300k median to $1.35mm median (from 1990-2016, unfortunately the best information I could get) a ~4.5X multiplier. I doubt those missing 4 years were another almost 4.5X multiplier on top of that.

Basically, I conclude that if someone wants to retire to a specific spot, they'd be better off taking the money they'd spend on the land, throwing it into an index fund and then using that money to buy that same (or approximate) piece of land in 30 years. And then have a ball with all the extra money they'd have.

Now, if you're talking about buying an existing house that you can and are willing to profitably rent out in the meantime, that is potentially another story--but one that involves work, dedication, and the willingness to move into and renovate/fix-up a 30+ year-old possibly abused house when it's time.
Last edited by rocket354 on Sun Mar 11, 2018 6:44 pm, edited 1 time in total.

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alpenglow
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Re: Buying a plot of land for retirement

Post by alpenglow » Sun Mar 11, 2018 6:39 pm

dazed04106 wrote:
Sun Mar 11, 2018 11:02 am
Hello all,

I am hoping you guys can provide me with some guidance and resources. My spouse and I are looking into buying a small plot of land to retire on. Retirement for us is probably in 33-38 years. I'm not sure where to begin on figuring out how to do this process from a boglehead's perspective. Any suggestions on what to know when buying land will be helpful.

Thank you!
Wow. That's a seriously long time horizon. So much will change in your lives over those years. I bought land in the country about 10 years ago. In that time I ended up getting married and now have two kids. All of sudden, camping in the country isn't very practical. The property has annual maintenance costs (taxes, mowing, forestry management) and I occasionally have to deal with land abuse (ATVs, dirtbikes, dumping). Please don't remind me of the opportunity cost. At least I paid cash so I'm not paying interest on top of it all. Take my advice - don't do it!

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Toons
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Re: Buying a plot of land for retirement

Post by Toons » Sun Mar 11, 2018 8:18 pm

Retirement for us is probably in 33-38 years.

How to do it?
Save enough to pay cash.
:happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

Bacchus01
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Re: Buying a plot of land for retirement

Post by Bacchus01 » Sun Mar 11, 2018 9:09 pm

Point wrote:
Sun Mar 11, 2018 6:16 pm
Agricultural uses are a big red flag. Check zoning so you understand what's allowed and what's limited. The elephant in the room moving forward for many jurisdictions will be marijuana cultivation. This brings with it pollen, smell, water usage, drainage/runoff, and herbicides. The smell of pot cultivation is really turning off some neighbors in Carpinteria where existing greenhouses are being converted from flower to pot cultivation due to market changes. Also think about traffic patterns with this type of ag usage. This is an evolving thing, but it could hit you and your investment if you choose poorly.

Funny that you mention this. We have some land that includes 5 acres that I’ve considered turning into pot cultivation when/if it becomes legal in Wisconsin.

Nate79
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Re: Buying a plot of land for retirement

Post by Nate79 » Sun Mar 11, 2018 9:11 pm

Throw the money in S&P500 and bump this thread in 25 years....

dazed04106
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Re: Buying a plot of land for retirement

Post by dazed04106 » Tue Mar 13, 2018 8:04 am

Thank you everyone for your responses! I think you all are right - we'd be better off properly investing the money we'd use on the property in something like the three-fund portfolio.

CurlyDave
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Re: Buying a plot of land for retirement

Post by CurlyDave » Tue Mar 13, 2018 5:41 pm

dazed04106 wrote:
Tue Mar 13, 2018 8:04 am
Thank you everyone for your responses! I think you all are right - we'd be better off properly investing the money we'd use on the property in something like the three-fund portfolio.
When we were about 5 years out from retirement, we bought a motorhome and used it to tour the areas where we thought we might want to move.

We could stay longer than if we were in a motel, it was always packed and ready for us and we could bring the pets.

Found a nice place and then built a home.

At 30 years out we would have picked the wrong place.

Find some recently retired person and ask them if they would let a pair of 30 year old kids pick their retirement location. Why would you let your younger self do that?

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Tamarind
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Re: Buying a plot of land for retirement

Post by Tamarind » Tue Mar 13, 2018 5:51 pm

Sandtrap wrote:
Sun Mar 11, 2018 11:58 am
Raw land is one of the worse investments on the planet
It is slightly better than graveyard plots. :)

My great grandparents bought a whole set of plots for the family. They are the only ones buried there and the remainder are unsellable, not least because the ownership is now divided among 3 times as many people as could fit there.

MO MAN
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Re: Buying a plot of land for retirement

Post by MO MAN » Tue Mar 13, 2018 6:25 pm

In my area, on average, many people change their mind after owning land at about the 7 year mark. They get tired of it and want something else. I would always be looking though, if you find the right place for the right money, maybe it will be the time to buy. We started rolling some of our land we own from mn into land in missouri, about the same value, same rent we collect, but the property taxes are only $3 acre in Missouri. Paying up to $60/acre on some chunks in MN. And I don't know why the big difference.

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Sandtrap
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Location: Hawaii😀 Northern AZ.😳 Retired.

Re: Buying a plot of land for retirement

Post by Sandtrap » Tue Mar 13, 2018 7:06 pm

Tamarind wrote:
Tue Mar 13, 2018 5:51 pm
Sandtrap wrote:
Sun Mar 11, 2018 11:58 am
Raw land is one of the worse investments on the planet
It is slightly better than graveyard plots. :)

My great grandparents bought a whole set of plots for the family. They are the only ones buried there and the remainder are unsellable, not least because the ownership is now divided among 3 times as many people as could fit there.
Yes.
Comparatively speaking.
There are a lot of types of R/E investments that have a greater percentage return than raw land.
It's not a blanket statement in context.
IE: raw land in an industrial area has value as heavy equipment storage, construction debris and fill staging, and so forth. So it depends. In the OP's case, it's different.

Typically, graveyard plots are in demand (large customer base. . . :shock: ) and usually in limited supply if in a upscale metropolitan or urban area where there is no more room for expansion of that type. Typically, for graveyards, they go "condo" (vertical) after that.

Cemeteries make money on sales and so that has to keep happening, not unlike condo development business and condo conversions, etc. The money is made in sales, not upkeep or land lease.
Also, cemetery plots are sold under a very different rubric than normal R/E.
j

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