Sometimes I make suicidal decisions. I call them suicidal because they are like decisions that are more bound to fail but I still go for them always thinking I can overcome all odds. For some reason I always had this kind of attitude. I do not really call them stupid decisions but really challenging and if every it can be called to have calculated risk, it is really a tough calculation.
I decided to buy a piece of land
Ok, that even sounds good right? Land is always a good investment. Problem is I am not really the person that has a super deep pocket that can buy anything I want to. Last month, near the end of April, I went on a trip to take a look at some piece of land some one has offer me and wife. With the high cost of real estate and me having a full time job in an expensive city, and my wife who is less than a year in the US without a job yet, and us running a small business to make ends meet is not really the type of occupational situation we would want to have in investing in real estate. We have 2 daughters with us in the US as well. But why did I still decide to buy a piece of land?
Why buy land and I have no money?
- The land is in a developing area. Many people who are in the real estate industry say it is best to buy real estate from a developing area. Not Underdeveloped, and not Developed. Underdeveloped is good to get the land super cheap but it will take super long for your money to get bigger. If you try to sell it, it will be harder to sell since almost no one will buy it yet. If you buy developed real estate, it is good because the value is high, faster to sell but it is a larger investment to pay. Developing is the best because you bought it at the cheapest price just before it goes up.
- Area already has been zoned out. Land here in the US that is usually bought by land developers that make communities have to propose with the city/county government on how things will be made. So they say where how the electrical power will be distributed, water supply and sewerage systems are also laid out. Where is the residential area, commercial area, schools, main roads and small roads. Land that already has zoning usually has more value than land without zoning because it already shows the initial plan what the land is for.
- I wanted a commercial housing lot. We were offered several residential housing lots. Showing us all the nice plans for them. Near the commercial areas, cul-de-sac lots, corner lots, etc. All of which I was no interested in. And I inquired for a commercial housing lot. Having commercial housing and a future apartment on it would be ideal to generate more money from the rental housing. Ok I am not really rich yet, and this is just a piece of land. Maybe after a few years I still have no money to put up my own apartment on the land. If that is the case and I really need money, then I can always sell the land and the price of land always goes up. I believe it is still the right decision.
- It is walking distance from the proposed commercial area. Although the place still looks like a desert, and some dirt roads, I checked the government’s plan for the area and the lot I decided to buy is near the main commercial area where malls could be put up. I liked the future commercial value.
- It was the last commercial housing lot near the commercial area. When I went for the tour, there were to lots available. Since this was somewhat an open house type of event, there were also other prospective buyers there. On the same day, someone else took the main lot I initially wanted. Then there was only one left and all the rest, someone has already bought. I did not want the lot to go to someone else. I knew I wanted to buy it right away. Again I am not rich but I just decided to say… “I am taking that lot but I will get the down payment to you by the of May.”
Now so far, earnings from work, bonuses, earnings from business, help from friends and relatives has partially got us through and right now I am still $7,000 short and has 4 days left to come up with the money.
Can I make it? So far loans have not been that cooperative but let’s still see. Wish me luck!
Maybe you can even help me out? Even just a dollar would help. 😀