In this market and current circumstances, is buying land still a good investment?

My wife and I have the opportunity to buy a 0.40 acre lot in a small village in rural NW Ohio.

The current owners bought the lot back in spring of 2021 for $34k. He's getting desperate to dump this now. It's been listed for a while and now he's got it listed for $25k and even stated in his description on Zillow "Need to sell immediately".

To my knowledge, based on the fact that it is in the village and there are houses all around it - it would be classified as "Improved Land". There's access to road, water, and electricity.

Even if I could get it for $22k and sit on it for 10 years or so - I think the profit could be there. Thoughts?

is it an investment? or are you going to do something with it? i don't think a half acre lot in rural ohio is an investment property just because i can't imagine a line of people trying to get in on it.

posted by j_crazy

is it an investment? or are you going to do something with it? i don't think a half acre lot in rural ohio is an investment property just because i can't imagine a line of people trying to get in on it.

Investment may not have been the word of choice. An asset would've been a better word.

At this moment, we wouldn't do anything with it. Sit on it and maybe look to sell it in 10-15 years.

We wouldn't be opposed to building on it - but that's something we wouldn't be looking to do anytime soon. Maybe in 4-5 years.

Real estate is probably the best hedge against inflation you can have.  But, of course, there was virtually no inflation for almost 20 years.  And I don't think this current spurt will last more than another year or two.

You're unlikely to lose much money over 10 years, if at all.  But you may end-up with a pretty lousy return in comparison to stocks or bonds.

People who make money on investment in small plots of land likely did it by being savvy to see where growth is occurring, or will occur, and holding it for 15-20 years.  Otherwise you'll probably be lucky to keep pace with inflation (which is a shitty bond return).

what is this properties proximity to high speed internet, shopping, major metro areas? I think that would play a huge role in what i'd tell you to do here. For example, a plot of land  this size in Peter's Township PA (where I'm currently looking) is worth more than 15 similar plots in Lowell, OH (where i own one) and the arrow is pointing way up in PT vs lowell for the future.  but it's because of the high speed internet, proximity to PIttsburgh Metro, centered in a tax haven relative to the rest of Pittsburgh, and is in the middle of the shopping centres of western PA.

End of the day, half an acre for 20 grand isn't going to make or break your retirement if you sit on it for 15 years. yeah you might sell it for 40-80 grand depending on how things go in the future. but if there is a chance that you'll ever build on it i'd say get it. as i said above i own a small plot in a town that is near and dear to my heart. not planning to do anything with if but if i have the chance in the future i will. either way i bought it for like 8 grand and won't miss that money in any event.