Cash-in investments to buy land?

[AD700]

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!

[longleaf]

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.

[123]

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)?

[AD700]

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.

Yes, a hotel would be cheaper. I guess the land would be a long-term project which would eventually become a home.

[AD700]

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)?

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.

[Uniballer]

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.