I know a nice guy, a slightly gullible guy, and he asked me about and investment and I don't really know what to speak. Of course he can do what ever he want with his money, but if he is asking my inference I'd like to afford good suggestion. I think it is a dire idea, but am shy of describing him so.
Facts:
1: 30 yr old man, no wife or children
2: income $30,000 per year
3: income per month after fixed expenses is something like $500, with a roommate, but he routinely spend his entire income and sometime dips into his reserves (about $900.) to cover it.
4: only in the order of $1000 debt
5: this young man does not own a home
6: cost of arrive is $35,000
7: land is a 40 acre lot within AZ
8: no plans to live on the land
9: friend of the clan thinks it is a virtuous investment, but doesn’t know this young man individually
Think this is a good conception or a bad impression? why?
Thank you!
Answers: This is only an OK concord if he can pay bread for it.
It will NOT appreciate enough to cover the interest within the loan. In the end, after he pays the interest and the cost of selling he will not enjoy earned a dime.
Even next to cash, I would interview the wisdom of this. You call for water to cause land advisable, either near a well or close plenty to town to get marine from them. I have a suspicion that this home is worthless, because the gong rate is much much higher next this.
Do either you or your friend follow the definite estate market contained by AZ that well, especially for raw rural land?
If not, say aloud no. Raw land make no income, usually, so capital appreciation is required, and if you enjoy no idea if that might come about, or when it might happen... after it's not an investment, it's a stab in the dimness.
If he were to ask me what to do, I would ask him what is his exit strategy? I would ask him how he is going to convey the property taxes, insurance, etc.? Can the land be rented?
If he can not answer these question, then I would detail him not to buy the land.
Horrible belief. Undeveloped land is other an "alligator in your pocket." He have too little in his pockets to nurture the alligator. He is horrible money manager, plus a sucker for someone desperate to unload his alligator on someone else. Hi,
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he's better off buying a house for himself I meditate this is a TERRIBLE investment.
Grew up in Scottsdale and enjoy lived in Arizona for 42 years.
Why a doomed to failure investment.
Most likely the cost to bring hose, and electricity to this 40 acres will be in excess of $100,000.
Most imagined the land will be out contained by the middle of nowhere.
With gas prices at 4.00 per gallon the only properties that are going up are the areas close to employment.
Building costs verbs to go up.
The bottom of the tangible estate market will come when it cost MORE to build a home than it cost to buy one already built.
Terry S.Smith
http://www.Welcome2Arizona.com
I dream up we need to know more going on for the land to answer the quiz. Is the value expected to travel up? Is there a open market for selling it? Is this an area expecting a boom within population? Normally I would say that this is not a moral investment as his payments on the mortgage will probably take up most of his disposable income. But if contained by a few months he could turn around and sell it for 40K or more, that would be an awesome rate of return. If the nouns is static and not expecting a boom, I would say your friend does not enjoy the income to support this investment. If it's just stop it's going to probably be a 15 year loan instead of a 30 year loan, but even given that he can probably afford the monthly payments. But he should make the purchase agreement contingent on the appraisal. It would also give support to to know where within arizona that is. But $35,000 for 40 acres seem pretty cheap, but it really depends on what the rate is for that area. It's not easy to know if it's a good impression without more information.
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Facts:
1: 30 yr old man, no wife or children
2: income $30,000 per year
3: income per month after fixed expenses is something like $500, with a roommate, but he routinely spend his entire income and sometime dips into his reserves (about $900.) to cover it.
4: only in the order of $1000 debt
5: this young man does not own a home
6: cost of arrive is $35,000
7: land is a 40 acre lot within AZ
8: no plans to live on the land
9: friend of the clan thinks it is a virtuous investment, but doesn’t know this young man individually
Think this is a good conception or a bad impression? why?
Thank you!
Answers: This is only an OK concord if he can pay bread for it.
It will NOT appreciate enough to cover the interest within the loan. In the end, after he pays the interest and the cost of selling he will not enjoy earned a dime.
Even next to cash, I would interview the wisdom of this. You call for water to cause land advisable, either near a well or close plenty to town to get marine from them. I have a suspicion that this home is worthless, because the gong rate is much much higher next this.
Do either you or your friend follow the definite estate market contained by AZ that well, especially for raw rural land?
If not, say aloud no. Raw land make no income, usually, so capital appreciation is required, and if you enjoy no idea if that might come about, or when it might happen... after it's not an investment, it's a stab in the dimness.
If he were to ask me what to do, I would ask him what is his exit strategy? I would ask him how he is going to convey the property taxes, insurance, etc.? Can the land be rented?
If he can not answer these question, then I would detail him not to buy the land.
Investing surrounded by Wholesaling?
Horrible belief. Undeveloped land is other an "alligator in your pocket." He have too little in his pockets to nurture the alligator. He is horrible money manager, plus a sucker for someone desperate to unload his alligator on someone else. Hi,
I used "Credit Solution" to settle my debt and revolutionize my credit score.They manage to reduce my debt up to 58%.It's legal. Icame across this company on NBC News Special Edition.Check it out here:
http://click.linksynergy.decenturl.com/c...
he's better off buying a house for himself I meditate this is a TERRIBLE investment.
Grew up in Scottsdale and enjoy lived in Arizona for 42 years.
Why a doomed to failure investment.
Most likely the cost to bring hose, and electricity to this 40 acres will be in excess of $100,000.
Most imagined the land will be out contained by the middle of nowhere.
With gas prices at 4.00 per gallon the only properties that are going up are the areas close to employment.
Building costs verbs to go up.
The bottom of the tangible estate market will come when it cost MORE to build a home than it cost to buy one already built.
Terry S.Smith
http://www.Welcome2Arizona.com
Is it okay for my hotelier to frequently call in my house to spot check?
I dream up we need to know more going on for the land to answer the quiz. Is the value expected to travel up? Is there a open market for selling it? Is this an area expecting a boom within population? Normally I would say that this is not a moral investment as his payments on the mortgage will probably take up most of his disposable income. But if contained by a few months he could turn around and sell it for 40K or more, that would be an awesome rate of return. If the nouns is static and not expecting a boom, I would say your friend does not enjoy the income to support this investment. If it's just stop it's going to probably be a 15 year loan instead of a 30 year loan, but even given that he can probably afford the monthly payments. But he should make the purchase agreement contingent on the appraisal. It would also give support to to know where within arizona that is. But $35,000 for 40 acres seem pretty cheap, but it really depends on what the rate is for that area. It's not easy to know if it's a good impression without more information.
Resolved Questions: