Vacant Land -New revenue ideas

[Sunstone]

Dear guys,

It is generally commonly understood that it is not wise to hold vacant land as opposed to having house on the land as it cannot produce revenue and therefore cannot service the interest on the loan used to purchase it.

However I want to throw up the case of what happens when a block of land is inherited, bought at a ridiculous price or some other reason. At this point in time say that whilst you have no issue holding the land (even with the rates etc on the property) you do not have the capital to fund a development and yet do not want to sell the property.

Accordingly what innovative ideas can there be for this vacant land to produce income WITHOUT building on it?

Couple of ideas:

-Mobile phone repeater station rental
(Approach mobile phone companies to lease part of the land for a repeater station to be put on the land)
-Advertising signage
(If the property has a major roadside frontage approach outside advertising companies to lease part of the land for an advertising billboard)

Less innovative ideas
-Get mining survey
-Farming type usage.

Does anyone have any other ideas?

Cheers,

Sunstone.

 

[Simon]

I know someone who let a guy park his truck on the land for an annual fee with a proper lease agreement.

Cheers,

 

[geoffw]

It is not in itself a bad thing to buy land. But it does depend hugely on the land. Buying land is much more a speculative thing than the sort of property investment most of us are doing. And it can fail very badly.

However, my grandfather bought land on the outskirts of Shepparton many years ago. He knew the town, and he knew its possibilities. He paid cash- no bank manager would listen to him. So presumably his family suffered some hardships- he was a plumber's labourer.

But the land he bought made him enough to fund him in acomfortable retirement. He never took a cent in government pensions- when he had every right to do so.

 

[Kevmeister]

Agistment? (or does that come under Farming Type usage?)

Car Parking? If the land was near shops you might be able to approach council and they might lease it?

 

[geoffw]

I know of someone who used a small piece of vacant land to house shipping containers. He hired the containers empty, stored them on his land, and hired them out as self-storage units.

 

[ShaunW]

Hi all, I spose the usage of the land will depend on it's size ie a warehouse sized block could be leased out to small businesses - motorcross bike track, archery club, golf-driving range.
A bigger block could be enhanced by a bit of creative landscaping and then leasing to paintball/skirmish type clubs.
Perhaps go real creative and put up all sorts of obsticles for cross-country running?
Thats me out of ideas for the moment

cheers
ShaunW

 

[landholdings]

I think the best use of small bit of land not near highly populated areas is to errect a nice big sign saying 'FOR SALE $xxxxx O.N.O. Mobile xxx-xxxxx'. and wait to see if any neighbours are interested or the odd passer-by.

Other than that I've looked into relocating an unwanted house, minium outlay is $35k.

I've told my friends they can go camping there - sorry no running water and no toilets but nice views of the mountains and its takes only 20+ hrs to get to.

It would nicely off set capital gains tax if I sold it this year... so I'll keep trying.

Cheers!

Landholdings.

P.S. No this is going into caveat emptor because I'm sure no one in their right mind would buy this piece of land unless they lived in the vicinity. (Plus I've tried flogging it on this forum before.)

 

[yuch.]

To make it a camping site, you might need to rezone it to for recreation though... and when you are ready to build, rezone it back to residential?

A bit too costly I think...

 

[Sunstone]

Dear guys,

Continuing on:

Flea-market
Tennis courts
Car wrecking yard
Bouncing castle entertainment site (children’s parties.) (possible after hours alternate venue for child care centre)
Boat hire

Storage yard for:
-Temp storage yard for relocated houses.
-Pallet storage
-Building materials
-Landscaping supplies
-Nursery stock
-Car impoundment
-Caravans, boats, trailers
-Earthmoving equipment etc
-Tire storage

A couple with only putting a relocated temporary building on the site with no actual connection to services.

(Eg. Primitive temporary office could be a chemical toilet; generator/solar panels for power; mobile phone?)
Car yard retail (Temporary sales office)
Truck, bus, trailer rental/hire (Temp sales office)
Outdoor café (Temp office plus furniture and beach umbrellas)
Other temporary sales office (Eg for land subdivision sales.)

Other ideas?

Cheers,

Sunstone.

 

[Mangoater26]

Approch the pedicoscals about renting it for there tent church and ask for a cut on their profits

 

[Peter Parker]

Though it's risky (if you haven't worked out what you'll do with it before you buy) I think there must be tons of opportunties.

This has intrigued me as you can buy blocks in reasonable sized country towns for maybe $10k.

If whatever you need to do costs another $10k and the whole thing delivers $100pw you've got a 25% gross return (probably >20% net) that could easily make a -ve geared IP neutral or improve loan serviceability.

A great project for the entrepeneur as they can transform a high risk/doubtful profit proposition to a low risk/likely profit situation if they know what's needed and do their homework.

The capital gain potential might not be that great, unless you can onsell it to other investors who may be able to transport a house onto it. But this depends on there being a shortage of rental accomodation and some other investor willing to transport a house.

Maybe one possibility is for you to do figures, get quotes to demonstrate the numbers stack up (with your preferred sale price for the land included) and sell the offer (by handing all your research to the buyer), not just the land.

http://www.investinginland.com/ is rather one-eyed about land but VERY interesting.

Regards, Peter

 

[Peter Parker]

Approch the pedicoscals about renting it for there tent church and ask for a cut on their profits

Right now you'd be better off asking them (as 'Family First') if they want to lease the land for election advertising.

Or, better still, give all political parties the opportunity to competitively tender for space.

Electorate Electorate Electorate replaces Location Location Location in this business. And throw away your spirit level and run Malcolm MacKerras' Election Pendulum over the land instead!

Regards, Peter

 

[Sunstone]

http://www.investinginland.com/ is rather one-eyed about land but VERY interesting.

Dear Peter,

I agree it is a good site.

Incidently I believe I was the one who showed it to you originally.

http://www.somersoft.com/forums/showpost.php?p=89778&postcount=8
http://www.somersoft.com/forums/showthread.php?t=13856

lease the land for election advertising.

Agree that this can be another revenue stream. A separate approach to the traditional billboard approach is to look at "banners". I know of one billboard company that is moving it's focus more and more into this area. More temporary and a lower initial build cost.

Cheers,

Sunstone.

 

[The Y-man]

Not sure about this one.......

I believe someone at the last Melbourne meeting raised the idea of a cemetary......... (It wasn't me!!!)

Cheers,

The Y-man

 

[Sunstone]

I believe someone at the last Melbourne meeting raised the idea of a cemetary......... (It wasn't me!!!)

Dear Y-man,

Actually it is not such a ridiculous idea.
Can't quickly find the exact thread I was after but this is one post that I have put up on the issue. Great idea to put it in this thread.

http://www.somersoft.com/forums/showpost.php?p=77481&postcount=32

Ongoing rentals......... Limited tenant complaints......... Limited maintenance issues. Limited need for connected services...........
No need for two carparks per dwelling and a large reduction in the required recreation space..................

Have also looked at the growth of this company. Certainly helped changed what was a "cottage" industry in Australia.

http://www.invocare.com.au/driver.asp

Cheers,

Sunstone.