Sell My Land To Get Debt Free?

[Atfulldraw]

2nd or 3rd job would’ve been my answer, but I love land and houses

I care way less about the money we have in the bank, our real estate is where it’s at…..

Today we spent time working on the tractors at the ranch, and tonight we will sleep at our little house on the river, bright and early tomorrow I’m flying out to sleep in my bed in south Florida for a few days…..our lives are richer for the time we spend at each of our little places.

I’ve got money in four banks and none of them will let me sleep there.

Part of me regrets every piece of land I’ve ever sold, some were worth it because we flipped them into a bigger chunk.

[trykonroye]

Originally Posted by justintyme8303

Its raw land and was a placed that checked alot of boxes for us. And we did buy it to build on to retire one day. For now just hunt there. It backs up to 2200ac on rear fence, 750ac on east fence and 350ac on west fence, north is the county road. So it hunts bigger than it is.

Our primary home is in Austin area and the land is out in Bastrop so about an hour away. The primary has also blown up in price but we really don't want to sell it. So if we cash out on one it would be the land I guess.

is there an option to sell the primary? THen pay it off and start moving towards living on the 23 ac? Just deal with a commute until you hang it up?

[Radar]

A few months ago, I was offered 13k an acre for my place. I would get to keep minerals as well. They wanted to develop and bust it up into 25 acre lots.

Some told me to sell and buy something else, but it kinda made me sick to see it get all destroyed. They ain't nothing around here that I could buy to replace it and money does not seem to be worth much anymore.

I told the man that I'll just keep it and not to bother me anymore about it.

[KactusKiller]

Here is my .02 as a land owner and business man. Not all debt is bad. Land debt is not bad, home debt is not bad. Any real estate debt is not bad. We just went thru one of the best times in history to buy and own real estate with the low interest rates. Hopefully you took advantage and refinanced both land and home. If either or both is under 4% then that’s basically “free money”. The only good thing about having one paid off is being able to use it to finance more land. If you still have some time till retirement then hold on to it. Yes it’s a good offer now but that offer or a better one will come. Unless your in a financial crisis right now being debt free won’t do anything for you financially. Your best retirement tool/asset is that land. The increase in value will way outpace any investment right now you could make in retirement.
I would even say this, if your home is financed under 4% and you a person that likes to pay extra each month to pay it off, don’t. Put that extra payment into the land or a nest egg for investment.
There is absolutely zero reason to pay off any mortgage done in the last 2-3yrs. Low rate financed debt is a gift. Why pay off something only costing 4% or less when inflation alone is double that which would make keeping money in a bank a loosing scenario.

Just some food for thought.

[TxBowHntr]

Don't think of it as a fun place to hunt, fish, hike, etc... Think of it as the best, highest returning investment you can have. That initial $175K is working it's @$$ off for you, and it will only get better. Would you cash out your 401K to pay off your debt? No. I agree with getting your debt (not including mortgage) to zero and keeping it there, but do not sell your investment off. If you do, you will be complaining about it later down the road when you retire. It'd be like buying Microsoft at $12 per share, selling it for $24 per share, while it is now at $264 per share. Land should almost always be a part of a well rounded portfolio. It is one of the safest investments you can make.

[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]

Originally Posted by justintyme8303

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]

Originally Posted by 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!

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]

Originally Posted by bowhunterhelm

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]

Originally Posted by KactusKiller

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]

Originally Posted by CrownKiller14

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]

Originally Posted by CrownKiller14

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]

Originally Posted by M16

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

[adnoh]

Borrow as much as you can on the land at the lowest possible interest rate and longest term. Use the equity in the property to pay off the higher interest debts. I don't know what your interest rate is on your home but if fairly low don't pay it off. Invest the extra money. Pay extra per month on your home if you want, When your investment account and loan on the house are the same then consider paying off your house. I own almost all the houses and property that I ever purchased still and wish I had not sold the others.

Capital gains hurts the equations IMO

[GarrettH]

Originally Posted by KactusKiller

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.

The debt was crushing, we were negative each month. We are saving for a large amount down on our next home, the reason that we didn't buy right away was credit being a little damaged would've led to a pretty significant interest rate. Especially now. We are only planning on renting for a year and hope rates go back down to decent with the credit improvement. We are looking at being able to stock back 60-70, I have multiple sources of income, the 2k a month is just from our day jobs. The freedom feeling is as simple as going to the gas pump and filling all the way up without worrying what the number comes out to, it's being in control of what comes in and goes out each month, it's the feeling of seeing savings hit the next 10k mark. It's hard to describe but it feels pretty dang good!

[KactusKiller]

.

[KactusKiller]

Also to anyone contemplating same issues of debt as OP and not directed at anyone in particular as this is a broad stroke of the brush.
The real "debt" that I think plagues most people isn't really debt its the money wasted day to day and month to month. Instead of selling homes, land and other assets sell you daily life style. Don't worry about long term debt, get rid of netflix, starbucks, new Iphones, Playstations, ATV/boats, vacations and eating out 5 times a week. You'd be amazed at what you can afford when you trim out the non essential daily expenditures. Long term fixed debt is not bad. Wasteful daily spending is the real culprit keeping Americans living paycheck to paycheck. Trim these things out and save/invest that money and it will get you out of debt quicker and in better shape than liquidating assets. I battled same thing as most do in yrs past.

[bowhuntertex]

That area is getting ready to be as expensive as the Dripping Springs area with Tesla moving out that way. 23 Acres of raw land around there will easily bring a million in the next 2-5 years. I would sit on it until that price at least doubles. That would be my selling point and then take that money become debt free and invest the rest in land out west (Sonora/Junction area).

[TKRanch]

We have tried to stay out of debt as much as possible. Have purchased used vehicles for cash for 20 years and have really only had our home as debt. Had to move out of state for a while and purchased another home there but kept our Texas home because we knew we would be back at some point. Our thought was to manage a small amount of debt now while we are youngish with a good income and have things paid off by the time we retire. We could make a TON on our home if we sold but where would we go. We could pay it off completely now rather than wait the 3 or 4 years, but at the interest rate we have on it we have decided to wait and let it ride until it is paid off which will be at least 10 years before we retire which leaves time to put some more $ in the bank... That is the plan anyway.... we all know how plans go, so we shall see!! Good luck.

[bowhntrmatt]

I would only say sell if you think you have the dream of land ownership out of your system, because it would be very expensive to replace.

Alternatively, keep them both now, and when you are ready to build, sell your house for a tidy profit and live out there debt-free.

[KingsX]

I just seen today 640 acres in my area for 2.4mil. Prime hunting ground!

[KingsX]

Originally Posted by KingsX

I just seen today 640 acres in my area for 2.4mil. Prime hunting ground!

Sorry 560 acres. https://www.land.com/property/560-ac...exas/15202389/

[HogHunter34]

Originally Posted by KactusKiller

Also to anyone contemplating same issues of debt as OP and not directed at anyone in particular as this is a broad stroke of the brush.
The real "debt" that I think plagues most people isn't really debt its the money wasted day to day and month to month. Instead of selling homes, land and other assets sell you daily life style. Don't worry about long term debt, get rid of netflix, starbucks, new Iphones, Playstations, ATV/boats, vacations and eating out 5 times a week. You'd be amazed at what you can afford when you trim out the non essential daily expenditures. Long term fixed debt is not bad. Wasteful daily spending is the real culprit keeping Americans living paycheck to paycheck. Trim these things out and save/invest that money and it will get you out of debt quicker and in better shape than liquidating assets. I battled same thing as most do in yrs past.

Don’t forget to add overpriced deer leases, year around protein feed bill

Alot if the real debt that plaques America is CC debt hitting 15-25% rate normally purchasing depreciated assets
Appreciated assets with low interest rates really shouldn’t be factored

[wingnut]

OP, keep the land it will be the best thing you have ever done! I’d be trying to payoff whatever is the highest interest rate loan you have.

[KactusKiller]

Originally Posted by HogHunter34

Don’t forget to add overpriced deer leases, year around protein feed bill

Alot if the real debt that plaques America is CC debt hitting 15-25% rate normally purchasing depreciated assets
Appreciated assets with low interest rates really shouldn’t be factored

Absolutely correct