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]

Originally Posted by 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?

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]

Originally Posted by 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!!!!

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]

Originally Posted by Rotney

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.

[miket]

What is the point of being debt free if you dont own land? IMO, what is the point of anything if you dont own land?

Just my opinion

[toledo]

I'm in the exact same situation as you. Not a month goes by that I don't struggle with the idea of selling. No doubt, it would make life easier. Also, I doubt I'll ever be able to replace it in the future.

How much do you actually use the land now? Ultimately, my decision to let it ride, sits on the fact that I'm on the land enjoying it on a regular basis. And me hating the idea of giving the feds a chunk of my profit.

[HogHunter34]

If you sell to eliminate debt then not a bad decision at all. I’d reinvest that added cash flow into equities
If you sell it with intentions to buy again someday with the price of land constantly going up you might end up back in debt depending what you buy in the future

You are in a good position though

[Kong]

We can’t answer that question but finding the right place is very hard to do as you probably know so take that into consideration. Anything that checks all your box’s going forward will be stupid expensive so your profits gone and then some more than likely. Personally I’d keep it, especially since it has those sized neighbors.. That’s pretty rare in today’s times,

[6.5 shooter]

Look into the Capitol gains tax, might want to keep it after that.

[justintyme8303]

Originally Posted by 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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Yes sir been hunting that debt free for some time. Working hard at paying off tons of credit card debt @$100k the last 5 years. So this would be warp speed in that process to the next level of living. That and IF I lost my job I could get any job to make the grocery bill. Currently in that same scenario would could lose it all.

The current land princes has me torn. I looked around to see what I could get using the 1031 but for what we walk away with after paying off the land note. We would be buying further away and same size place and same debt. So that's a no go. So we figured get debt free and when Gods ready he will put the next place in our life as he did this one.

Wife reminded me Gods plan it will be the right place and the right price.

We could just go back to leasing if we want to hunt. Or could finally afford to save up to go out of state to hunt.

I think its just we have gotten emotionally attached to the land and "the dream" of living out there one day.

[HogHunter34]

Originally Posted by 6.5 shooter

Look into the Capitol gains tax, might want to keep it after that.

Looks to be 15%

[SmTx]

Don't do it! You're not trying to sell it and the # offered hasn't matched your # that you would sell for if offered.

[justintyme8303]

Originally Posted by 6.5 shooter

Look into the Capitol gains tax, might want to keep it after that.

Its @$40k to the man and leaves @$28k in the bank.

[Kingfisher789]

In Rosanky or PVille?

[Kingfisher789]

You’ll probably never get another chance to buy 23 acres…

[justintyme8303]

Originally Posted by SmTx

Don't do it! You're not trying to sell it and the # offered hasn't matched your # that you would sell for if offered.

That's our other thought too. That $500k was jus beer talk in the pasture watching the sun set on our little farm. Its not listed and getting offers on it that have escalated quickly. Not looking to list it but what is our real "we dont want to sell it price"? But this offer has our attention and got us putting pen to paper to see.

[justintyme8303]

Originally Posted by Kingfisher789

In Rosanky or PVille?

The land is in Rosanky 5ac in pasture the rest heavy wooded in post oaks, cedar, yaupon. We have been going on on weekends clearing out under brush.

[HogHunter34]

Originally Posted by justintyme8303

Its @$40k to the man and leaves @$28k in the bank.

Yeah that shakes out on 15% rate from cost basis

Good luck on your decision

[backwoods]

You have to ask yourself how important having land is now and in the future.
Since you asked the question here it seems like it may not be that important to you.

If it is, then I’d figure out a way to cut expenses and pay off those cars. Then, divert those dollars to paying off the land.

I don’t really view the land payments as typical debt. Land is an investment, at worst a hedge against inflation. You’ll get your money back.

Keep in mind, you never know what will happen in the future. Buying land could be much harder down the line so if land is important to you, then think carefully on selling

[doghouse]

Never sale land except when in a financial crisis. JMO

[easeup]

trying to say this politely......what are you going to change after you sell off and pay debt only to be in bad debt again in 5 yrs and this time with no assets?
I mean you didnt just get in debt on purpose.

[TexasTrophyBowhunter]

That’s tough. Unless you are planning on paying off your house and really being debt free I wouldn’t do it. That area is not going to get any cheaper. I would enjoy it because like some other people are saying you won’t ever be able to own that property in the same area again. I would get rid of my two car payments maybe by buying some older cars you can pay cash for. There you can really start putting the hammer down on the CC bills and still have a place to hunt. You might be sitting on property worth close to a million bucks one day. Hold it and let it ride. Just my two cents.


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[DUKFVR]

If u have any desire to buy land in that area in the future , you may want to keep it. Prices will just keep going up.

[14JKURX]

Being out of debt with our country in the shape it is in now may be a good thing.

[TKRanch]

If you want to end up in that area one thing to consider is whether or not you think you will be able to afford to buy back in later in life when the time is right.......

[justintyme8303]

Originally Posted by easeup

trying to say this politely......what are you going to change after you sell off and pay debt only to be in bad debt again in 5 yrs and this time with no assets?
I mean you didnt just get in debt on purpose.

Guess you missed the post about we have been paying off debt the last 5 years. So far $100k that was credit cards and some of my wife's car. We owe $3500 on her car now and that's where the current $650 a mo cash flow is going so only a few months left. Then we will have $1250 a month to put on my truck to get it paid off. We have $20k in savings for emergencies. So not going back there again ever.

[Low Fence]

I know at least 20 people who have done the exact same thing as you have described. 100% have now regretted it. They are out of dept…. Temporarily but there is ZERO quality land available now for what you will get for yours. Some even sold there newer trucks at the extremely high offers only to learn fast they can’t be replaced either

They were left with a pile of cash…. That won’t buy them anything and living in rented houses and campers that are burning through their pile fast. Soon they will be back in the same financial situation… except they won’t have anything to show for it

[KingsX]

Originally Posted by justintyme8303

Guess you missed the post about we have been paying off debt the last 5 years. So far $100k that was credit cards and some of my wife's car. We owe $3500 on her car now and that's where the current $650 a mo cash flow is going so only a few months left. Then we will have $1250 a month to put on my truck to get it paid off. We have $20k in savings for emergencies. So not going back there again ever.

You had/have 100k in credit card debt?

[justintyme8303]

Originally Posted by KingsX

You had/have 100k in credit card debt?

We had about $65k in just CC its gone now.

Once that was gone we turned our resources to the wife's car ($600 a mo) it too is almost done @$3500 left so only a few more months to go. So in they last 5 years between those CC and her car we have chewed/killed $100k off our debts.

That will free up $1250 to start on my truck ($800 a mo) that we owe $35k on still so at $2050 a month wont take too long.

Then we will just have the house in town $1200 (20yrs left) and the land in the country $1200 (28 years left) to pay on. So that extra $2050 will go to one or the other.

[justintyme8303]

Our current debts listed below.
House in town $170k
Car $3,500
Truck $35,000
Land $170k

Total Debt $380k

Offer on the land $450k

[KingsX]

Originally Posted by justintyme8303

We had about $65k in just CC its gone now.

Once that was gone we turned our resources to the wife's car ($600 a mo) it too is almost done @$3500 left so only a few more months to go. So in they last 5 years between those CC and her car we have chewed/killed $100k off our debts.

That will free up $1250 to start on my truck ($800 a mo) that we owe $35k on still so at $2050 a month wont take too long.

Then we will just have the house in town $1200 (20yrs left) and the land in the country $1200 (28 years left) to pay on. So that extra $2050 will go to one or the other.

I gotcha.
Well beer talk of not I don’t have the answer. I know once you have been in debt with 65k in CC debt on top of a mortgage and land the thought of being debt free would sound nice!
I personally own land too and I’ve never thought about selling it. I know everything has a price and if offered enough it can make you think or change your mind. With that said I could be offered 2x or even 3x what I payed for my land and I wouldn’t sell it. I live on my place now but even before that I wouldn’t sell it. I plant a small 2-1/2 acre food plot on it and hunt it. I’ve had very personal moments on my land that will never leave me and my family feel the same way about it. The honest life dream for me was to own land and one day build a forever home on it. Long story short in my case it’s not even a thought of selling and if I had certain unwanted debt I’d just work hard at eliminating it.
I’m in a similar situation of age and years to retirement as you. I know how the thoughts enter your head of what you would like the retirement life to look like.
I don’t think you have anything worth more than your house or your land on investment values. Personally I’d keep both unless you intend to move or something.

[Ætheling]

No. Land in TX due to the population boom which isn’t going to end will continue to drive prices up exponentially. Whatever you make up now you will lose at a multiplier when you go to buy more in the future. Why would you get rid of an investment that went 170-450 that quickly? It wont stop growing


I dont think the average person will be able to afford any real land in Texas in the next 5-6 years.


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[ken800]

I did the same but I live on 5 acres in town so it wasn't a complete loss. I had about 70 acres in the Lampasas area that was beautiful with a fairly large lake. I started getting crazy talk offers so I threw something I felt was ridiculous at someone and they met it... I walked away with enough cash to pay off my house, all remaining debts, pay uncle sam his cut, and still have a small chunk left over to invest. I now have two very solid incomes in my household with no debt to service. Maxing tax-deferred investments every which way I can now. Debt free is some seriously stress-free living. As you said, your basic bills can be met by literally any job.

Do I regret not having my land in Lampasas? You betcha! Do I regret selling it? Nope.

[justintyme8303]

Thanks all for the input!

[eliteweldingco]

Really depends on the property. Could you replace it some day? Some property is hard to replace, some is just a ole cow pasture.
If I had the chance to double my money where I live now, nope! But the last place I would’ve without looking back.

[Biggs]

Keep the land. Continue paying everything else off. Continue living below your means. High interest/liability items payed off first. They ain’t making any more land. I wouldn’t sell it, as long as I could afford it, unless I had a contract to buy replacement land.

[AntlerCollector]

Originally Posted by Kingfisher789

You’ll probably never get another chance to buy 23 acres…

$450K will buy lots of 23 acre tracts.

[planomustang]

Trying to split the middle here.

First, I never had that amount of debt. If I ever had, I would have died a long time ago, from stress. I suggest getting that under control, ASAP, then never letting it come back.

Look up Dave Ramsey, if you need help.

So here is the split the middle solution. Is it possible to sell enough of the land to get your debt under control, but still keep a piece for the future? If you go that route, be willing to set the amount of acreage and the price you want, then be patient.

[HogHunter34]

Originally Posted by AntlerCollector

$450K will buy lots of 23 acre tracts.

Don’t forget that 450k is going toward paying debt off less capital gains tax.
Cash leftover will not be much

Buying power is gone at that point
But debt free is nice

The real question is priorities at this point
Debt free vs owning land. Which is the greater priority at this point in your life?