Hi,
I live and work internationally, so my accommodation is paid for when I am on contract (most of the time), but I have no base to call my own.
I am contemplating buying a piece of land that I can gradually build a permanent base on. This could be a base when I am between contracts or when I eventually stop work.
To buy the piece of land I want, I would need to cash-in much of what I currently have invested in index funds. Is this a bad idea?
The alternative would be to wait a couple more years while I build up more cash – but by then the type of land I want may be harder and more expensive to find. Plus, the money I would need for the land could not be invested as I would be looking to use it within a 2-3 years.
If I cashed in my index funds now, I could get the land and then start investing in index funds again after that.
Any thoughts on what I should do? Anything I should consider?
Thanks!
Cash-in investments to buy land?
Re: Cash-in investments to buy land?
Wouldn't a long term hotel rental be cheaper in between contracts? I personally wouldn't buy land. The land you buy could lose value, you will lose liquidity, and your growth potential will be devastated.
I would buy a home only if I knew I would spend huge amounts of time there or needed a place to raise a family. The costs associated are simply too high.
I would buy a home only if I knew I would spend huge amounts of time there or needed a place to raise a family. The costs associated are simply too high.
Frugality, indexing, time.
Re: Cash-in investments to buy land?
How many years are you away from the time when you will need to have a building on the land to live in (full-time residence)?
The closest helping hand is at the end of your own arm.
Re: Cash-in investments to buy land?
Yes, a hotel would be cheaper. I guess the land would be a long-term project which would eventually become a home.longleaf wrote: ↑Mon Feb 11, 2019 1:12 amWouldn't a long term hotel rental be cheaper in between contracts? I personally wouldn't buy land. The land you buy could lose value, you will lose liquidity, and your growth potential will be devastated.
I would buy a home only if I knew I would spend huge amounts of time there or needed a place to raise a family. The costs associated are simply too high.
Re: Cash-in investments to buy land?
I would aim to get something very basic established within a couple of years (think tiny house), then over a longer period (10 years?) build something more permanent.
Re: Cash-in investments to buy land?
I would be concerned that the land you are buying will become unbuildable (due to changing environmental regulations/building codes). This could make it impossible to get your money back out if you change your mind.
Buy land when you are ready to use it, or as a speculative investment using only a small part of your net worth.
Buy land when you are ready to use it, or as a speculative investment using only a small part of your net worth.