Sell My Land To Get Debt Free?

[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?

[HogHunter34]

Depends if you really love the place & plan to retire there. In that case, I wouldn’t do it
Is your primary residence on this 23 acre place?

[STGS]

Unfortunately, you are going to get answers on both sides of the coin....

I can tell you there is an amazing feeling when you are debt free. The ability to tell your money where to go instead of having almost $3K going out the door to service debt every month, can be life changing.

Last bit of advice, don't sell it only to end up going back into debt 12 months from now. Once you are debt free, stay that way. Change your habits for good!!!!

[justintyme8303]

Depends if you really love the place & plan to retire there. In that case, I wouldn’t do it
Is your primary residence on this 23 acre place?

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.

[Pedernal]

Congrats on the awesome investment. If I was in your shoes I would be closing on that offer and enjoying being debt free.

Regardless of what you decide to do, best of luck to you and your family.

[okrattler]

It'd be sold so fast I'd think I still owned it.

[justintyme8303]

Unfortunately, you are going to get answers on both sides of the coin....

I can tell you there is an amazing feeling when you are debt free. The ability to tell your money where to go instead of having almost $3K going out the door to service debt every month, can be life changing.

Last bit of advice, don't sell it only to end up going back into debt 12 months from now. Once you are debt free, stay that way. Change your habits for good!!!!

Thats the plan we figured put $3k in the bank savings and $500 a month to "live a little".

[Rotney]

They ain’t making land anymore, just saying. Wish I never would of sold my 45 acres in Red River County.

[Gumbo Man]

At your age you can decide what’s most important to you. Not knowing your intentions with the property or how much time and satisfaction you get out of it it’s hard for the on looker to answer this question. But STGS gets it. Having your money work for you instead of paying interest that can virtually eat up equity can be life changing in a few short years. You’ll make the right decision when it feels right. Good luck to you sir. And by the way yours is a good problem to have. You bought at the right time.

[KingsX]

Debt free is best case for retirement. Sounds like you won’t buy another place in the area for what you payed though. I think you have to weigh your debt and retirement plans on a timeline. See if you can weather keeping the land and debt until retirement?
I also understand the strain you mentioned of a mortgage payment ,land payment and 2 car payments on the cash flow. I believe you’ve thought about it a lot and $600vs$3500 cash flow for years depending on how many years could be tough. Probably why you’re considering it?
Wish I had good advise…….like mentioned before it depends on how much you like the land and how important that cash flow is for many years to you. How many years left on the mortgage of the house and land. The cars payments will fall off before you retire I’m sure.

[Mike D]

Man I love me some debt free but this one has me torn.

Yes you could flip it for a nice profit but……..land isn’t getting any cheaper so what would be your plan for a future land purchase?

The question you have to ask yourselves is, is that THE place you want to retire? You are currently using it for hunting land so what would be the plan for that if you sold it.

I don’t envy being in your shoes.


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[Preacher Man]

Sell your primary and move to the acreage

[lmartin5]

They ain’t making land anymore, just saying. Wish I never would of sold my 45 acres in Red River County.

This!

I would keep it...My Dad purchased 41 acres across the road from our 126 acre farm in 2007 for $950/acre.

Sold it in 2014 for $1,600/acre, $26,650 profit.

That same piece of land sold last week for $3,850/acre!!!

[Preacher Man]

A friend of mine sold 40 acres for a big profit a few years ago. That piece of land is worth way more now then when he sold.

[HOOKNBULLET2]

Are those large properties next to you in a conservation easement? If not, you may have a giant mess move in next door one day. I say this after watching a literal traveling carnival move in next door to a beautiful ranch outside of Weesatche, TX.