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In one year I will have $ 10,000 saved up from my job. However, the 98 van I am driving will most likely last another two years, maybe three. Should I take the $ 10,000 and spend it on a economic car, or buy land for future home, double my profits, and have property and then have some left over for a car.

Now land is cheap where I live in the armpit of Alamosa, CO. I saw 40 acres the other day for only $ 8900. There are some good deals here and there. I also have a friend who bought 80 acres for only 19,000 five years ago and nothing is wrong with the property, the owner just had to sell fast.

Thank you for your help. Happy New Year!

3 Thoughts on Everyone, please help me with this question!?
  1. Reply
    Brenda M
    July 23, 2011 at 10:35 pm

    How about both 🙂

    How about buying your land and paying half of the price in cash and borrowing the rest and paying monthly payments from the cash kept back which you’ll continue to add to in your savings as you go along. Try and make weekly payments on the loan if the bank will let you and then when the car/truck/van has need to be replaced you’ll have some cash to put towards that purchase as well.

    Just make sure that your ” cash flow ” works in anything you decide. the rates of borrowing right now are very low and easily managed with fixed rate borrowing.

    all the best to you

  2. Reply
    linlyons
    July 23, 2011 at 11:18 pm

    look on craigslist for cars.

    i rather think you’re being somewhat over optimistic about doubling the value of your land.
    keep in mind, property this year is not experiencing the same inflation as it was a couple years ago.
    what are you going to do with the 10 acres?
    is it cheap because no-one else wants it?
    if so, what makes you think people will want it more in 10 years?
    are you thinking it’ll rain more and be more valuable?
    just because something is cheap, doesn’t mean it’s a good deal.
    it seems to be the majority opinion that house values are going to fall more, before they stabilize.
    land will probably do the same.

  3. Reply
    Goonhilda
    July 23, 2011 at 11:38 pm

    You’re being unrealistic if you expect to double your money in a few years on a property. It takes at least 14 to 21 years to guarantee that, on average. Property doesn’t appreciate in value quickly. You get about a 6% return per annum.

    You should keep the crapbucket car. I drive a crapbucket, and it costs a bit to drive, but I can’t afford to replace the car and reach my goal on my mortgage at the same time. So keep driving it. When it does finally pack it in, in a few years, the cars that will be available to replace it will be better quality anyway.

    Buy the land, but don’t buy it because it’s cheap. Buy it because it’s in a good area with good growth and services. That will help you get a return on the investment. You might want to save a little more and buy a property in a better location. Take at least 6 months to research what you want and where you want to buy. Look everywhere, and that way, when you see something appropriate, you’ll recognise it. It’s a big decision and should not be taken lightly.
    Look at all your options, like relocatable homes, and make sure it has access to water, electricity, and other services, or you may find later that it’s hard to sell if you need to sell the property.

    Keep your crap car. Save and research your property purchase. Then, once you have purchased the property, and you have more definite plans consider getting a newer replacement car. By that stage, the cars available in your price range will be better quality.

    Best wishes

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