Sell My Land To Get Debt Free?

[andre3k]

One of the main reasons I was able to buy my property is because I haven't had a car note in years. I buy cash cars from the auction, fix them up, drive a few years and sell them for what I bought them for usually. Others have mentioned selling your truck, that's a lot of money going out every month. I would consider going that route. My daily driver is a 99 4runner that I bought for 3500 in 2019. I can easily keep flipping vehicles and upgrade to something newer and nicer every few years.

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[DEADEYE1]

land

It's been forever and a day I've wanted my own land. God blessed me with 23ac a little over two years ago. We paid $175k then and land prices have jumped since. The place next to us sold for $465k a few months back. Drinking some beers one evening we joked that if offered $500k we sell it. Well .... now we are being offered $450k on it.

I hate to sell it but thinking we could get debt free and start saving to buy land again one day. Current debt is our primary house, 2 auto loans, and the 23ac farm total $380k. I know we will get hit with cap gains tax. But current income $120k with $650 a month positive cash flow. If we cashed out and paid off all debt that changes to $3500 a month cash flow. I'm 46yr old so still have a "few" years b4 I retire.

Thoughts?

I've seen this a 1,000 times. How much do you think the new land is going to be 10 years from now??? Way more than what you are going to sell it for!!! The thing about land is they are never going to make anymore of it!!!!
I see people sell their vehicles after 3 years and tell me yeah but they almost gave me what I paid for it, I'm like ok, now you got
another 5 year note They didn't gain anything

Change your habits and starting paying more in principal every month

Just my 2 cents

[M16]

Wait a minute. Where are all the folks who were saying don’t buy real estate unless it’s rental property or income producing? You know. The ones who said don’t buy raw land.

[GarrettH]

My wife and I sold our home this past June for the sole reason of getting out of debt. We are now 2k+ positive each month and are currently leasing while we continue to build savings. That's definitely different than selling land but man what a feeling, my entire adult life was in debt and the freedom we have now is amazing!

[KactusKiller]

My wife and I sold our home this past June for the sole reason of getting out of debt. We are now 2k+ positive each month and are currently leasing while we continue to build savings. That's definitely different than selling land but man what a feeling, my entire adult life was in debt and the freedom we have now is amazing!

Not saying your right or wrong because everyones situations are different, but what are you building savings for?? What is the endgame or the milestone your trying to achieve? Instead of owning an asset your paying someone else asset for them with rental over a mortgage. There is some financial gurus taht say don't buy a home rent. The only people that is actually better for are people that are constantly on the move. What is your freedom you feel? If your going to stay in a house and pay rent for the next 5-10yrs anyway, where is the relief of debt coming from? Your still out that money every month only its completely gone.

Again not saying what you did was wrong but would be curious how you came to that decision.

[ATI]

Don't Sell.
Consolidate the bills that you MUST pay so you make one low payment for all of them.
If they're bills you don't have to pay (no repossession will occur), they know that too and will work with you, your credit may get damage a little but you can always rebuild your credit, but you can't always buy land as cheap as you once bought.

[CrownKiller14]

In 20 years, I bet the land will be worth more than 1.5 mil.

Keep the land!

That's a big gamble that the land will increase 3x its current value. Personally I would pay off the debts and invest like suggested. Money making money till you're ready to use it. By 60 you'll be staged to purchase what every you're looking for at that time. Might acreage or maybe condo on the beach. People wants change over time. What your paying in property taxes each year is only going to go up up up. Heck your property taxes now could probably cover deer lease dues and corn. Give you access to a lot more land than 23 acres, I know it's not your own.

[Txtourist]

Keep the land. Power through, you bought it for a reason. If at all possible work every evening and weekend you can at Home Depot or somewhere until you’re debt free and have a healthy reserve.
When there, can you rent your primary home out and build something basic on your acreage?

[bigblock78]

Whatever you decide good luck to you. Debt free is nice but letting go of 23 acres sucks.

[LWC]

I personally wouldn't sell land unless I had a plan to turn right around and invest the proceeds in more/better land, immediately.

[gingib]

If you are having this discussion, you have MANY MANY years before retirement

[gingib]

Not saying your right or wrong because everyones situations are different, but what are you building savings for?? What is the endgame or the milestone your trying to achieve? Instead of owning an asset your paying someone else asset for them with rental over a mortgage. There is some financial gurus taht say don't buy a home rent. The only people that is actually better for are people that are constantly on the move. What is your freedom you feel? If your going to stay in a house and pay rent for the next 5-10yrs anyway, where is the relief of debt coming from? Your still out that money every month only its completely gone.

Again not saying what you did was wrong but would be curious how you came to that decision.

Agree!!!

It is funny honestly listening to ALOT of people when they discuss money. Some on here have a very good idea with money. Most like most americans do not

[M16]

What your paying in property taxes each year is only going to go up up up. Heck your property taxes now could probably cover deer lease dues and corn.

I am going to assume it’s ag exempt.If not it should be. I’ve got land in several countries all over Texas. And at the most my ag exempt properties are less than $2 per acre. $46 dollars won’t buy you a lease and won’t buy you much corn either.

[KactusKiller]

That's a big gamble that the land will increase 3x its current value. Personally I would pay off the debts and invest like suggested. Money making money till you're ready to use it. By 60 you'll be staged to purchase what every you're looking for at that time. Might acreage or maybe condo on the beach. People wants change over time. What your paying in property taxes each year is only going to go up up up. Heck your property taxes now could probably cover deer lease dues and corn. Give you access to a lot more land than 23 acres, I know it's not your own.

Land appreciation is a lot les of a gamble than any other market investment you can get into. Especially in that area.
I’d invite anyone to share a story where the value of their land went down. You never hear anyone say, dang I wish I had sold that 20-100 ac when I had the chance. Almost all will say, I should have kept it another 5-10yrs. Bastroo is a hot market. No way I would sell unless I was in a major bind for cash or was upgrading to a larger property. Even then I’d try to find a way to buy new using equity of the existing property. I’d also say that you should have refinanced that land to a lower interest rate when you had the chance. Pretty big difference between 6% and sub 4%. No reason you couldn’t refinance and owner finance property unless early payoff is addressed in the contract

[KactusKiller]

I am going to assume it’s ag exempt.If not it should be. I’ve got land in several countries all over Texas. And at the most my ag exempt properties are less than $2 per acre. $46 dollars won’t buy you a lease and won’t buy you much corn either.

Yep