Originally Posted by bacho
I intend to sell them at a profit down the road and have more cash than I started with. At that time I will need to purchase another home, and I will intend to do the same maneuver. When I can no longer take care of myself or/and a home, that investment is cashed in.


Sounds great on paper, and this strategy will likely prove successful as you have several parcels..

At the time you decide to sell your properties, do you expect to find alternative land/housing at a more attractive price than you paid for your original two parcels? Or would you in effect be "downsizing" by combining the proceeds from the sale of these parcels into fewer purchases (like one parcel instead of two)?

If I sold my house now I'd see a profit versus what I bought it for, but to buy an identical house (size, location, age, etc) I would have to pay more than the sale of my current one. So my net result might be negative if I chose to sell and buy something else.

Which was my thought regarding considering your primary residence an "investment". If I had other parcels, of course I'd consider those investments since I can sell them and still retain a roof over my head.

I think maybe I fall into the "Ron Swanson school of finance": Bury it in the back yard...? smile Or perhaps considering "cash-on-hand" as a measure of buying power rather than net worth (which requires borrowing = paying someone else for the privilege of using your money)


Jay