Land investing

[Account Closed]

I have a family member who bought a piece of land for $10,000 about 1.5 acres in a heavily secluded area , but close to the beach. Since you currently cannot rent the investment it is not cash flowing. A argument that the buyer gives me is that since it is payed off and they pay such a low amount in taxes it is not hurting them. To me this still makes no sense, but what I currently am asking is what is the enticement for many when it comes to investing in land.

[Steve Haight]

@Account Closed

Welcome to BP,

First of all why did your family member buy the property in the first place? What is the value of the land? Anything close to a body of water will always have more value. Why buy land? So many reasons and so many ways to make money doing just what your family member did. Why did I buy desert land at $200 per acre with no water or power in 1994? Thought it may go up in value and 10 years later it was worth $5000 per acre x 3000 acres. There are many stories of people that made fortunes in land, look at Howard Hughes.

Happy Investing