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Investing in land vs buying a small flat?
100saving
Posts: 314 Forumite
So everyone is always talking about buying property to rent out etc. but over the last few days I have been thinking of doing something a little different.
A good size plot of Freehold land can be picked up from £5k to 60k in a 40mile radius from where I live depending on location. would it be worth using my savings to buy up land without a mortgage with the look of the land going up in value and one day building a house to live in?
This way I get a house I want to live in hopefully cheaper than just buying a flat or very small house handing the profit to someone?
has anyone done this before? I am just looking for everyones thoughts!
A good size plot of Freehold land can be picked up from £5k to 60k in a 40mile radius from where I live depending on location. would it be worth using my savings to buy up land without a mortgage with the look of the land going up in value and one day building a house to live in?
This way I get a house I want to live in hopefully cheaper than just buying a flat or very small house handing the profit to someone?
has anyone done this before? I am just looking for everyones thoughts!
Age: 24 / London/Ireland / Salary €49,000 / 1 London BTL (8% yield) / Total savings pot £12k+
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Lloyds Club CA £5,000 @4% / FD Regular Saver £3,600 @6% (12 of 12) / TSB Classic CA £2,000 @5%
Clydesdale Direct CA £1,000 @2% / Santander ISA £700 @0.5% / Premium Bonds - £100
Halifax Reward CA (£5 per month) / Santander 1|2|3 CC (cashback)
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Comments
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most such land is in areas that are zoned to NEVER be built upon. It is a huge gamble, and unless you are investing 5% or less of your total net wealth I would not do it.
Chances are, you would not even be able to camp on it overnight, but you might be able to keep animals there, farm it etc.0 -
Knowing that you can get planning permission would be essential. Financially, I doubt it would be worth it, compared to broad spectrum investing, but it might be satisfying in other ways.0
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If it has Planning Permission, or there is an indication that PP could be obtained, the value of the land will soar.
So you will presumably have to buy without this, and hope (gamble) that things change. Who knows - both the gov and the Opposition talk of expanding house-building (which has to happen somewhere) and/or talk of easing Planning restrictions.
On the other hand, many people have got rich buying fields, then selling off individual 'plots' within the field to gullible 'investors' who hope exactly what you are hoping, but who actually own nothing more than a bit of grass, often without even any access.0 -
So everyone is always talking about buying property to rent out etc.
No, it's just that you're noticing those who're talking about it. Those who think that it might not be such sure-fire easy money are probably not talking about it.A good size plot of Freehold land can be picked up from £5k to 60k in a 40mile radius from where I live depending on location. would it be worth using my savings to buy up land without a mortgage with the look of the land going up in value and one day building a house to live in?
Did you count the trees? (See http://www.marketwatch.com/story/want-to-get-rich-read-fiction-2013-11-22/print?guid=AAFBF198-5201-11E3-8EB2-00212803FAD6)This way I get a house I want to live in hopefully cheaper than just buying a flat or very small house handing the profit to someone?
has anyone done this before? I am just looking for everyones thoughts!
Your confidence in the certainty of a good return is worrying.
Who's selling this land, and why?
Warmest regards,
FAThus the old Gentleman ended his Harangue. The People heard it, and approved the Doctrine, and immediately practised the Contrary, just as if it had been a common Sermon; for the Vendue opened ...THE WAY TO WEALTH, Benjamin Franklin, 1758 AD0 -
has anyone done this before? I am just looking for everyones thoughts!
I wouldn't do it as an investment.
I did investigate buying woodland that has been advertised for sale but decided against it. That was more for having something as a place to go rather than investment and wasn't with the intention of building on it.Remember the saying: if it looks too good to be true it almost certainly is.0 -
Buy a wood, fence it against deer and bunnies, drill a well on the QT, and camp in it all summer. Brilliant. But that's not perhaps your plan? Mind you, for £60k you may be able to buy an islet in the Hebrides, and then you needn't bother with the fencing.Free the dunston one next time too.0
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