To Sell or not To

[Roberto Chan]

I need you opinion on this.   I own a once acre in Davie, FL.   A buyer is offering me 150K for it.  I think the property is and will definitely be worth more.   They are expanding the hi way already because all around they are building building.  

Now my dilemma,  A property does not bring income, it is a pure equity play right now.  I could use that money on a 1031 and buy something to make it generate income.  Or I can sit on it and "maybe" sell it in a few years for more than 150.  

Opinions please =)

[Mike Huang]

If the area around that land is developing, then you are right, it will probably appreciate and if you hold for the long term, then you will get a lot more out of it than if you sell it now.

However, if you think about this from a Net Present Value perspective, having your money sit there in the future isn't doing anything for you now. Whereas you could use the money and start investing it now, which could lead to potentially exponential growth (a favorite term of Josh and Brandon). You also don't know what inflation will be like in the future.

If you are doing a 1031 exchange, remember you have 45 days to identify a new property and 180 days to close on it.