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    Saving to purchase land

    Current age 25, my end goal is purchase a decent sized piece of land by 50. What is the best strategy to accomplish that goal?

    My approach is monthly contributions to various mutual funds until I reach the target value I want over around 20-25 years of contributing. Has anyone done this? How aggressive should I go with the investing?

    Looking to hear advice and any success stories others may have had when purchasing their dream land.

    #2
    I'm only 30 so fairly young like you, and plan on buying land, somewhere around 10-20 acres. I paid off all my debt besides my house and plan on making a purchase on land once I find the right plot. I'll be putting a down payment and taking out a loan for the remainder, like a house basically. I will also make extra payments when I work some OT or when I feel like throwing some at it. Once I pay my land off I will sell my house and use that to put a down payment towards building a house on my land. Don't forget that the value of land has never stopped going up. So my that's why I would rather buy now and make payments rather than try to pay it off in full when I'm 50 or have another note close to retirement.

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      #3
      Good call. If you can get a loan for 3-4 %, but the land value appreciates each year around 7%, then you can stay ahead. However, not knowing my long term career path and location for the land yet, I'd like to get started putting some money in the bank

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        #4
        Buy a rent house as soon as you can swing it. Refinance the rent house to get the down payment for the land when the time comes.

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          #5
          I personally haven't saved money with the intent of buying land, but I think you have a good plan. Also, don't tie yourself down with unnecessary debt. I personally don't buy into the idea that land will never go down in value. It could decrease in value and historically I believe there have been periods where land has gone down, although over time it recovered. Mutual funds would put in at the same sort of risk, but are probably more liquid. You just don't want to get caught in a situation where you cannot make payments on land and the value has diminished.

          All that said, I think most people that own land (large or small) can afford it because they have a lot of money. So increasing your income (and not necessarily your lifestyle to an equal degree) will probably be the best way to achieve your goal.

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            #6
            Marry a rich woman (or man)
            Become an oil tycoon
            Invent the cure for cancer
            Learn to understand women, and write a book about it
            Win the lotto
            Win “who wants to be a millionaire”

            That’s all I got.

            Comment


              #7
              Originally posted by AgTag23 View Post
              Current age 25, my end goal is purchase a decent sized piece of land by 50. What is the best strategy to accomplish that goal?

              My approach is monthly contributions to various mutual funds until I reach the target value I want over around 20-25 years of contributing. Has anyone done this? How aggressive should I go with the investing?

              Looking to hear advice and any success stories others may have had when purchasing their dream land.
              What is 'decent size'? Hunting ranch or do you want to live there? Distance from a metro area important? State important? Suitability for agriculture important?

              I would define all that, maybe even add a few criteria, then set my goal around that. Goals need to be SMART. Specific, Measurable, Attainable, Relevant, and Time-bound. Of course goal setting and achieving is a life long discipline to master in itself.

              Agriculture can help pay for the land. Timber, cattle, row crops whatever. Depending on the suitability of the land. Just something to keep in mind.

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                #8
                Originally posted by AgTag23 View Post
                Good call. If you can get a loan for 3-4 %, but the land value appreciates each year around 7%, then you can stay ahead. However, not knowing my long term career path and location for the land yet, I'd like to get started putting some money in the bank
                You won't get a loan on land below 4%

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                  #9
                  I'd set up an automatic investment that automatically withdraws funds each payday. Personally I'd invest it all in Vanguard Total Stock Market Index and let it roll.

                  Comment


                    #10
                    Originally posted by TacticalCowboy View Post
                    Marry a rich woman (or man)
                    Become an oil tycoon
                    Invent the cure for cancer
                    Learn to understand women, and write a book about it
                    Win the lotto
                    Win “who wants to be a millionaire”

                    That’s all I got.


                    All solid plans.


                    Sent from my iPhone using Tapatalk

                    Comment


                      #11
                      I’m 35, My wife and I own three separate properties. One is paid off and the two others will be paid off when I’m 40. We’ll double our money on two and might triple our money on the third. When it’s time, our goal is to sell all three and buy a ranch. We bought them cheap, fixed the homes up and we now rent (airb&b) them out. We’ve never paid the house note in Galveston from our paychecks. We both work full time at our jobs. IMO buy property, keep buying and selling real estate until you reach your goal. I was 25 when I started buying property, it’s fun, pays very well if you’re careful on how you spend. Good luck!
                      Last edited by ostey22; 02-27-2019, 01:27 PM.

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                        #12
                        Originally posted by Throwin Darts View Post
                        I'd set up an automatic investment that automatically withdraws funds each payday. Personally I'd invest it all in Vanguard Total Stock Market Index and let it roll.
                        that there is someone that knows the market! Great advice. Index funds over mutual funds...

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                          #13
                          Originally posted by gingib View Post
                          You won't get a loan on land below 4%
                          true, will be doing great to get below 5% for land only, mainly because there isn't a structure on it for equity.
                          Just put down all you can on it, or just pay for it outright.
                          Good luck!

                          Comment


                            #14
                            Get a brokerage account and start buying market ETF's. One that follows S&P 500 would be simple enough. When you grow your nest egg, there are more complex ways to manage the fund... But for now the barrier for entry is low as well as the expenses on ETF's.

                            I use Fidelity and they have a bunch of ETF's you can trade at no cost. Mutual funds will typically cost you to trade and have minimum investments (usually $2500)..

                            Your best bet is to start now and not put it off another day.

                            Comment


                              #15
                              So, so, so much is going to change between 25 and 50. No way to give you a concrete answer on this question. You may have half a dozen kids when you're currently planning none or a couple. Just try to live beneath your means and sock away money and whenever the time comes, you'll be comfortable making a purchase.

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