I live in Midwest and visiting Orlando in few days. I am thinking of investing some money in land there. Particularly, I am interested in buying a vacant lot in a subdivision already being developed. I do not think I will be building home on that, if that, at least for another 15 years when I will move there to retire. I am aware of the biggest downside of buying land in general: negative cash flow, however, I am hoping to make up for that in appreciation of land value. I have about half day available to look around the place, hopefully with a real estate agent. I do not want to buy a home or build a house right now. My questions:

1. Is this a nutty idea, any other downside I have not considered?
2. How do I get hold of an agent now so that he/she can show me what is available?
3. Anything else that I should be considering?

Thanks a lot for your ideas and advice!

IN!

Yep, this is a nutty idea for a variety of reasons. Among them:

First is that FL real estate prices are in free fall and not likely to stop soon.

Second, why buy a lot instead of house?

MrKlick said:Yep, this is a nutty idea for a variety of reasons. Among them:

First is that FL real estate prices are in free fall and not likely to stop soon.

Second, why buy a lot instead of house?

Thanks! About your first point, trying to guess when a real state market has reached bottom, how is that different from trying to guess when a stock market has reached absolute minimum, something that wise people advise against and anyway seems more of a matter of luck than anything else?

I do not want to buy a house right now because already have one where I live, and the size of the financial commitment required for buying a second one, headaches involved in renting it out even if I hire a third party to manage the whole process etc.

Look at the big picture.

There are industry pros, seasoned RE investors, and people like yourself....which group is going to get the good deals ?

Considering your experience level - of not knowing how to get a hold of a FL agent, and having just 1/2 a day to dedicate to this purchase when you are in FL, it is highly unlikely you will get the good stuff.

For historical reference , before the 2000s RE runup which made a monkey look like a RE tycoon, selling "FL land" to newbie investors was the butt of jokes for about the past 50 years. Kind of like selling the Brooklyn Bridge. We are back to those times.

Are there deals in FL? Definitely. Most are Properties in prime areas , not partially abandoned subdivisions likely to turn into Section 8 ghetto government subsidized project neighborhoods because the current owners have to find guaranteed paying tenants to rent to.

InTrouble said:I live in Orlando. Do not do this.

But if you insist...look around Lake Nona where there is a new medical school, 2 new hospitals coming and a large influx of research facilities...that area should be pretty amazing 15 years from now...just cow pastures mostly now.

Not a terrible idea as others have suggested. On this same forums, people are screaming about imminent hyperinflation, and then buyers of land will be looked as genius. These so called Real Estate Professionals are not really pros. If there is money available, construction will occur, real estate will transfer hands and everyone and their brother will be doing transactions. Once money dries up, like now, even decent properties cannot be purchased.

Some HOA's I know of have requirements that lots be developed within a certain time of being purchases. They don't want empty lots sitting around, so make sure you check that out.

Even if this were the perfect time to buy… and if you were to somehow stumble into an unusually great deal, you’ve got to consider that things might change over the next 15 years… and Orlando may no longer a good place for your retirement home.

Why put all of your eggs in one basket? IMO, invest your money somewhere else… somewhere more liquid and/or portable.

InTrouble said:I live in Orlando. Do not do this.

Let me try to guess what you meant. Please feel free to interject:

It has high crime, high taxes, poor schools, houses and rentals are still high, economy is not diversified, traffic is bad, gangs are everywhere, summers are muggy - did I miss anything?