Is buying vacant land worth?

[wll6568]

Do any of you invest in vacant land? Is it worth than an established house? I mean the growth rate.

Can you get same kind of mortgage with buying a vacant land? Is the interest tax deductible?

What kind of things should take note of when buying a vacant land? Is hilly land a bad choice?

 

[womble66]

Can you get same kind of mortgage with buying a vacant land? Is the interest tax deductible?

For this it is a NO from me as the asset for which the loan applies to (the vacant land) is not an income producing asset therefore interest on that loan in not tax deductible.

 

[DaveM]

For this it is a NO from me as the asset for which the loan applies to (the vacant land) is not an income producing asset therefore interest on that loan in not tax deductible.

Not entirely correct. Holding costs are deductible if land is purchased to build an investment property and construction begins in a reasonable timeframe

SC vs Steele

 

[Scott No Mates]

Growth will depend upon scarcity. Prices for a vacant block in a rural area is likely not to grow as quickly as a block in a growing suburban area.

If you can find a tenant to occupy the land eg for parking of boat/caravan, storage of building materials etc then you are deriving an income from the land.

 

[marg4000]

You can get lucky.

In-laws bought a block of land intending to build "one day".

Sold it 3-4 years later for over 4 times what they had paid for it.
Marg

 

[Redom]

You can get finance for land - no problem. But servicing may be an issue - there's no rental income that can be used.

 

[Redom]

Not sure about investing in it - the growth factor would have to sufficiently compensate the 0 yield.

Unless its got oil underneath or there is some other underlying 'shock' that the market hasn't priced it in - I wouldn't be able to justify it.

 

[Jamie M]

Buying vacant land is fine - banks will lend against it. Up to 95% depending on location.

Is it a good investment? I personally wouldn't just sit on a block of land hoping it goes up in value - some do though. The lack of income is a big deterrent for me.

Cheers

Jamie

 

[lifebeauty]

we have ever bought vacant land which one of the best deal we have ever made...5 acres vacant land,good one in NT-Darwin when u buy vacant land u don't need pay stamp duty on it..so is good buy vacant land if u intend to build on it later

 

[lifebeauty]

for help a bit with mortgage u can sink the bore put power n ablution then u can rent straight away(this base of my knowledge with owning rural property) n remember location-location buy block still can commute to town not too remote..

 

[imbi3]

Buy a block, organise plan & permits and sell?