BIG DECISION

[theshoenlebens]

Hi everybody
I'm really torn on a decision I have to make.
I have the opportunity to purchase some land and to do so I will have to sale a MAJOR amount of my stack.
I have purchased 95% from here so I'm asking for your opinions.
I will take a big hit as I started when silver was way higher.
I know the land is the smart move but it is killing me to make the decision to dump all that I've worked for. ( most at a lose)
If I decide to do so keep a look out in the classified ads because all of it will look familiar to you guys.

[silverflake]

I am a big proponent of getting some land. I say, if the deal is a good one and imminent, then do it. Look at it this way - you are trading one tangible commodity (PM's) for another (land). It's not like you are trading silver or gold for a ten year treasury note. Plus, silver and gold are still available and under valued (in my opinion) so as soon as you buy the land you just start re-stacking!

I personally am saving for some land also. But just not doable right now without taking on debt and I am as anti-debt as I am pro-precious metals.

Good luck, friend.

[68Camaro]

Minor comment. Devil is in the details. Is this "the land" you've been waiting for, just what you need, hard to find, not likely to come around soon? If not, I would tend to wait myself.

[TXBullion]

What are you going to with the land ?

[theshoenlebens]

This is the major factor in the land deal:

It is 10 acres that adjoins my property now. Kinda like the idea of keeping anybody from building real close to me.

Property is vacant land with a log house on it. No electric to it or county water

[IdahoCopper]

paying cash for it, or just a down payment and are acquiring new debt?

[rsk1963]

fix up the log house some if necessary & rent it out for weekend use (if you are close to a major park or lake etc), use that spendable income on rebuying pm's

[theshoenlebens]

paying cash for it, or just a down payment and are acquiring new debt?

Paying some other debt and down payment.

[beauanderos]

If they don't need immediate cash, then try offering an option to buy (say hit them up with 1/10 the purchase price) good for eighteen months or so (however long they're willing to hold it for you. Lock in your price now. Ties the property up so no one else can buy it, but gives you a chance for PM's to rise higher before you have to sell.

[Hawkeye]

My .02 - I would pull the trigger if it has to be done now. If it was just a random piece of land at an average price, I might hesitate, but it's not often that 10 acres next to you becomes available. I've always said that, unless it's a life and death situation, land is probably the only thing I would trade my pms for.

[Numis Pam]

If they don't need immediate cash, then try offering an option to buy (say hit them up with 1/10 the purchase price) good for eighteen months or so (however long they're willing to hold it for you. Lock in your price now. Ties the property up so no one else can buy it, but gives you a chance for PM's to rise higher before you have to sell.

+1..... Do everything you possibly can to keep your metals for awhile longer and still figure out a way to purchase the land too. There are lots of ways to do this... just start researching all your options really fast.

[LooseChange]

Just my opinion and some thoughts that came to mind when thinking about this:
It would look like there is really 2 decisions here:

1) Buying the land or not
2)How to do it (Sell stack/part or other options)

1) I would lean towards going for it. Land almost always will improve in value (limited resource and people keep wanting more of it) Not to mention peace of mind that it adjoins your property. I don't know what the zoning is, but what's to stop some developer coming in and making nice lots for 3 or 4 million dollar homes? It also depends how much land you have now for example is this 10 acres on your 300 ac farm or behind your 1 ac yard? If this will more than double the size of your property, its a big move no doubt and you may want to give your budget some hard looks, esp with increased Property Taxes? If you see the potential in the property (other than its right next to you) then others will too and it may sell fast.

2) There are other ways of making the deal than selling off a large portion of your PMs. You could really bargain down the price, or only sell off Half of what you think you need to first. So if you do have to use more PM money you just need to know a few weeks out so you can sell accordingly. As soon as you sell, you lock in the loss, but if you wait and take the XXX amount you were trying to sell and sell 1/12 of it each month over a year, you might not lose as much if prices rise. You may also realize that you can tighten up your budget over that 12 months and not even have to sell as much overall. It would work doubly in your favor because you wouldn't have to "re-buy" at the higher prices to build back to where you were. If the land is all wooded minus cabin, that could be a good income of firewood sales for a couple years without disrupting too much of the natural landscape. Like renting the cabin, there is Value everywhere, it's just how you see it.

I really like the idea above of getting it off the market too, it locks you in to the property now, so you know no one else can have it.

[theshoenlebens]

Thanks for the responses so far.
Still thinking on what to do.

[rexmerdinus]

fix up the log house some if necessary & rent it out for weekend use (if you are close to a major park or lake etc), use that spendable income on rebuying pm's

Think Mother-in-law suite. Any place not in your own house is best for that!

[rainsonme]

My inclination is to buy land not PM's. But do consider: taxes, can you afford them? Liability --- was there any enviornmental problems that might come back to haunt you? Insurance. Liability for any dumped appliances, caves, water hazards, etc. Would you own the mineral rights? What will you do with the land? farm it? sit on it and wait for appreciation? Where in Ohio are you --- as I recall, it is a large place ---- in the rural area where development may never occur, or near enough to a city that the land will appreciate in your life time? What was the plan for the PM, and what is the plan for the land? Is the land zoned so that it is a real asset?

[TXBullion]

there is Value everywhere, it's just how you see it.

Awesome Quote



Few things that have already been touched on. 10 acres next to your parcel gives really no indication of what everything looks like (relative size etc). Does it add value to your current home with an additional 10 acres as part of it that you can recoup greater than what you have put into it?

What are you going to do with the land? Land itself is not an income producing asset but you can always make it so. If you do, will the numbers make sense? In fact, you will have to pay more into taxes, you will have to pay more insurance for general liability (probably not a standard practice but could leave with you more liability without insurance if something happens on the land and you are not insured).

What is the reason the current owner is selling?

Are you planning to move any time soon?

What is your objective in owning the land?

A lot of people want/like to own real estate/property for the bragging rights. Dont let this be a driving factor as it causes silly purchases to be made. It has to make sense for you. If it doesn't , try and structure the deal where it makes sense for you.

What if you agree to buy it in 12 months and PMs drop 50%? How will that effect your decision?

In regards to the post about environmental liability, you can get a Phase 1 environmental inspection. They research any possible contaminations and will let you know if everything looks good. They usually run at least a grand to two grand though but I would be doing it myself so you dont get stuck with a love canal type situation.

Can't really say yes or no until we know all the specifics but even then, its more so going to play into your specific situation.

[theshoenlebens]

Not really looking to do anything with it except to hunt on and like I mentioned, not wanting anyone building close.
There is no zoning except for clauses for junk cars and such.

[barrytrot]

I don't know what the zoning is, but what's to stop some developer coming in and making nice lots for 3 or 4 million dollar homes?

If there is any potential in this, I would say 100% buy the land. If in 10 years you can flip it to the developer for a million that sounds like a great plan

[Rodebaugh]

Not really looking to do anything with it except to hunt on and like I mentioned, not wanting anyone building close.
There is no zoning except for clauses for junk cars and such.

Ohio has monster Bucks.

[theshoenlebens]

Not really looking to do anything with it except to hunt on and like I mentioned, not wanting anyone building close.
There is no zoning except for clauses for junk cars and such.

Ohio has monster Bucks.

I know, have my eye on one that has showed once this year. Wasn't in range but my stand has always been good for at least a couple of deer every year during archery Just two on the wall though(and the other land is approx. 50 yards from it. )



BTW, at the least my question has gotten some activity stirred up. Forum has been slow lately.

[InfleXion]

Not my area of expertise, but if the price is right I would think the sum of 2 adjacent plots is greater than what they would fetch individually. So it seems like a good move, assuming the potential gain outweighs your metal losses. And then you can't really put a price on added privacy either.

For me personally if I already had land to live on then I would prefer metals as I view them to be more undervalued, and housing has only treaded water due to QE but demand is going to be stifled as long as the economy is struggling to provide jobs people need to buy homes. If it's straight up land, well there's a lot you can do with it and I suppose it depends on the details.

P.S.
Beware of wetlands.

P.P.S.
It's not a loss if you don't sell.

[barrytrot]

OP: Have you made a decision yet?

[theshoenlebens]

Yes, Going to purchase and still working on the details.

[Double3]

I would probably do it.

Where abouts in Ohio?

[theshoenlebens]

Northern Adams County.