Advice...needed from some older wiser people

You haven't been paying attention to what they want to do with Capital Gains have you......that plan would be about the same as ingesting .05 ounces of rat poison every day for 10 years....hoping you build a tolerance.

 

Only if you buy silver and are stupid enough to put it in a safe deposit box. Keep it where Uncle Slam won't look and there will be no capital gains. Again, I'm just sayin..

 

As soon as you purchase, or sell the silver to acquire the funds for the property....you are required to pay the capital gain.....not before.....I would be afraid of what it could be by the end of 7-10 years.

Same reason we can't sell our property....the capital gains on the sale would kill us!

 

I wouldn't worry about the pond. It probably had livestock on it before. You will be doing some clearing and site work. The pond can easily be filled in. Most likely the dirt that come out of it is right around it. I would take in consideration what utilities are available. Digging a well and septic system are major costs. And before you do anything, get a title search done on the deed. I put money down on some land and after a title search come to find out the deed was sold twice back around 1960. And the ones selling weren't the legal owners. So it's a well spent $200. Also get a warranty deed.

 

I'd just offer a few things (I have bought and sold many pieces of bare land and homes on acreage)...I really like the idea you stated in this thread that you "could collect aluminum cans" to make the mortgage payment you could do that. You are looking at worst case scenarios (half-jokingly). The first 20 acre piece of mountain land I bought in California the payment was $170 a month (owner carry) and I told my wife, "I could cut firewood and make the payment" and I ended up doing just that during the wonderful Carter recession. Make the term of the loan long enough that you KNOW, no matter what, you can make the monthly nut and that you can sleep at night. I always (when I financed land) always went for longer term even if the interest rate was higher. I insisted on no early payment penalty, so I could quickly pay it off AND I never had to worry about coming up with the payment.

Currently I have two 60 acre pieces in Nevada (one with my summer home on it) and a 40 acre piece in New Mexico with my winter home on it...As an investment alone, bare land is a gamble. Most banks won't loan on bare land, so you would have to carryback if you decide to sell. This could make it difficult to get your money out if other opportunities arise or you want your money out quickly. I will add that once you own the land outright and get a house paid for on it...the feeling is bliss. You know you always have a nice place to lay your head at the end of the day.

Make sure you know the taxes and liability insurance costs...taxes in Nevada are really high on land, so it eats at potential profits you can make on sale. Of course, if you go live on the land you are thinking of buying and spend your life on it, then this doesn't matter at all...but that is a rare event. Track every expenditure you make on the land you buy and keep a record of it. These expenses will come off the sale price when it comes to determining your potential capital gains tax.

I wish you well AT...I wish I had your head when I was your age...I'd be a millionaire .