Empty block of Land vs. House

my advice is to combine the both ideas.. Buy a piece of land and an old house and try to redecorate it. Maybe you can do it yourself and safe some money in this way

You know, if you buy a house it comes with the land as well? That way you will still own a block of land, but as the years go on the people renting your property will pay for it, instead of you having to pay for it.

If you are just starting out it might be a good idea to buy something that has some sort of cash flow. In 10 years rents will go up a lot and you might find yourself earning a lot of passive income.

@ Sydey – What are your investment goals? How much do you want to make in 10 years?

Well if you buy land then you will never achieve positive cash flow unless you develop it. You said at the start you wanted to buy land and just let it sit for 5-10 years and let it appreciate. This will take money out of your pocket every week, which you just said you didn’t want. So I am getting a little confused here.

I can find properties that generate $10-$20/week right off the bat for around your price range (or even under your price range). With some minor renovations and TLC they could be making $50-$70/week. Then in 5-10 years time maybe $150/week positive cash flow.

You can repeat this formula if you can come up with enough capital and enough borrowing capacity.

My site will help you find positive cash flow properties but there is a fee so I would only recommend it if you are in a position to buy, not if you are just considering it.

Good luck

Interest rates are currently 6-7%. Yes interest rates will go up to maybe 8-9% but this will probably take around 2-3 years. In 2-3 rents will likely be higher than they are today which will help pay for the rising interest rates.
So no they might not be positively cash flowed at 9% today, but in 2-3 years the chances are good that they will be.
Why are you looking at an interest rate of 9% today? If you are worried you can fix interest rates for around 8% for 5 years.

Check out my site for the fees. Currently I have a special on, but this ends in 2 days.

Of course we take into account all expenses associated with property, including even vacancy.

I would be looking for proeprty that is on a very decent size piece of land that can be subdivided down the track

$10 a week is nothing, as soon as you get 1 small hiccup/ M/R, rent vacancy etc you will be easily washed out of cash flow.

Always buy property that you can add value to, under priced, urgent sale, and the value is in the land

I have been investing for 18 yrs solid now, have about 25 properties, and houses that I bought 8- 10 yrs ago on large blocks, the councils are now starting to allow dual occ, units, subdivions- they have chugged along at break even, or some cash flow but the growth and opportunity is in the land. So things we bought for 80- 90k nearly 9 years ago are now worth 350k juts for the land and this is before we subdivide or do dual occupancy.

I also used very good buyers agents and paid a lot to them to search, select, secure the deals, advise and help me- so even years ago I paid 10k buyers agency fee to buy a 3 brm, dbl brick, 2 street access, on over 1400 m2 10 min from Brisbane- every cent was worth it as I couldnt find or get these opportunities myself, they happen too quickly, so 93k inc buyers agency fee is now worth approx 400k not subdived and apprx 650k subdivided as land is worth gold as very scarce close to Brisbane- I belive in developing a core circle of highly experienced advisors, buyers agents, finance brokers, sales agents and ring them weekly always and email them also, and they will keep in contact and bring the deals your way.

Sometimes you have to spend it to make it
No I wouldnt be holding for years vacant land, and cant deduct it and hoping and praying something happens- only large developers do this when they buy huge parcels for future use and they have the $$$ to hold and have factored it all in. 

In regards to what businessglobal said. I have just been listening to a talk from Steve where he talks about “The Monopoly Theory”. Where you tie up pieces of land next to each other because it will be worth a lot more down the track due to the development potential. This is kind of like what businessglobal has done by buying large blocks of land. They are worth a lot now because of their development potential. So this is definately a good strategy if you have the income to support it.

For me, I need the passive income from property. My income is not huge so every property I invest in at the moment I want the passive income so I can begin to fund my lifestyle through my property and work less, not have properties cost me any money. This doesn’t mean this is the only method, it is just one of many good methods. It depends on what you want to achieve.

As for the testimonials, the site is very new, and thus I cannot provide you with any testimonials. However, we do offer a 110% money back guarantee on our service. So if you don’t like our service, you can get 110% of your money back in the first 30 days. We can’t provide testimonials at the moment, but we can take the financial risk instead of you having to take it.