Land Portfolio Update
Posted: Tue Apr 12, 2022 12:53 pm
Good News today.
You may remember that I have purchased 2 parcels of property in the last couple of years.
1) Dream investment property that is surrounded by a high-amenity, growing recreational community. We can farm this until it becomes time to sell. We bought this in September 2020 and I simply can't believe the low price we paid ($3,200 per acre). There are houses going up in all directions from this property and not very far away.
2) The other is the more questionable one. 77 acres with 45 acres tillable. We will add a couple or three tillable acres this spring as we will clear a small old pasture.
I paid $4,000 per acre across the board for it-thus $308,000.
There is a building site that is a complete mess. Lots of beer cans/bottles and other crap. We have slowly been cleaning it up.
My hope has been to sell the (roughly) 10-acre building site for $8,000 per acre. Thus doubling my money on that portion and lowering the cost per acre of the rest. Well, we are signing a purchase agreement today for $80,000 on the old building site.
I will pay surveying costs and the acreage might actually be around 11 or 12 acres-so I won't net $8,000 per acre-but the building site isn't doing us any good and we won't have to clean up the crap, which is still a major job.
Buyer is a carpenter who will build his own house and he is not scared of the clean up as he has the equipment and so forth.
Long-term, I am giving up some future potential as there is a major highway project close by, which, when finished, will increase the value of the property but I am happy to get rid of it at this price and end the clean-up job
You may remember that I have purchased 2 parcels of property in the last couple of years.
1) Dream investment property that is surrounded by a high-amenity, growing recreational community. We can farm this until it becomes time to sell. We bought this in September 2020 and I simply can't believe the low price we paid ($3,200 per acre). There are houses going up in all directions from this property and not very far away.
2) The other is the more questionable one. 77 acres with 45 acres tillable. We will add a couple or three tillable acres this spring as we will clear a small old pasture.
I paid $4,000 per acre across the board for it-thus $308,000.
There is a building site that is a complete mess. Lots of beer cans/bottles and other crap. We have slowly been cleaning it up.
My hope has been to sell the (roughly) 10-acre building site for $8,000 per acre. Thus doubling my money on that portion and lowering the cost per acre of the rest. Well, we are signing a purchase agreement today for $80,000 on the old building site.
I will pay surveying costs and the acreage might actually be around 11 or 12 acres-so I won't net $8,000 per acre-but the building site isn't doing us any good and we won't have to clean up the crap, which is still a major job.
Buyer is a carpenter who will build his own house and he is not scared of the clean up as he has the equipment and so forth.
Long-term, I am giving up some future potential as there is a major highway project close by, which, when finished, will increase the value of the property but I am happy to get rid of it at this price and end the clean-up job
