I NEVER Invest In Land Even Though I Love Real Estate – Here’s Why

I NEVER Invest In Land Even Though I Love Real Estate – Here’s Why

Guess who? Real estate, real estate, real
estate. Brady Bunch? Nope, it’s land asking, how come you are
not buying it. [Music]
What’s up everybody, I am Jaspreet Singh and welcome to the Minority Mindset. You
get it. You want to be smart with your money unlike [clears throat] the majority of
people? You want to buy assets, you want to build your wealth, and you know that real
estate is the best place to go, but what about land?
I never invest in land, and I’m going to go over seven reasons why I never invest in
land, and why land sucks as an investment. But, before we get into that,
make sure you hit that thumbs up button below, because [clap] it’s kind of like
a virtual high-five, and subscribe to the Minority Mindset YouTube channel, that way
you don’t miss any of our new videos every Monday, Wednesday, and Friday. First: land
does not depreciate. The first time I heard land doesn’t depreciate, I got
really excited. You excited about real estate? I can’t imagine that. You’re
telling me that land never goes down in value?
I’m guaranteed to make money? Hold my wallet, I need to go buy la- No, that’s
not what that means. When you own an investment property like a house, or an
office, or an apartment complex, you own a building that sits on top of
some land. So you own this property, you own the building, and you own some land.
This comes with a tax break called depreciation, where you get to tell the
IRS, “Hey IRS, my building is worth one million dollars, so I deserve a tax break
every single year for that, because you’ve got to respect your elders.” Even if you
make a bigger profit this year and nothing’s wrong with the property, you
get to depreciate the value of your building on your taxes, which means you
get a tax break just because you own this property and is one year older. But,
the government comes in, and they draw the line in the land, and they do not let
you take that tax break on land, so you do not get to take the depreciation deduction.
Two: You are speculating. When you buy land, you are hoping that businesses
and developers will come in, and they’ll start to build roads, and homes, and
businesses, around your property, around your land, this way the value of your
land goes up, and so other developers want to
come in and develop on your land. Maybe it’ll happen, maybe it won’t. Who knows? [humming]
Oh sorry, I was waiting for the value of my land to go up. At the end of the day, all
of your success depends on the luck of your, ah man, I got an 8.
I hate speculating because I have no control over my investment, no control over
my income, which is why I invest for, three: passive income. When I buy a house or an
apartment complex, I don’t care if the value of the property goes up or down,
that doesn’t matter to me. I am investing for passive income, not appreciation. The
only thing I care about is how much money is going to leave my pocket today, and
how much money is going to come back into my pocket, each and every month. If
property values go up, that’s great, if they come down, oh well, I’m not buying
with the goal of selling, I’m buying for cash flow which is why land makes
no sense for me. The key here, is to pay attention to what’s happening around you,
this way you can make the smartest decisions with your money, and if you’re wondering,
“Jaspreet, what’s the easiest way to do that?” Well,
we’ve created the free Minority Mindset newsletter, where our team first breaks
down the top finance and business news, and then we show you how this news affects
your wallet, this way you can be money smart, and our newsletter is completely
free. You can subscribe to our newsletter by clicking the link up here or by
clicking the link in the description below, so check it out. Fourth: Let me ask
you a question. Do you like losing money every single month? Nooo. That’s why I don’t
own land. When you own land, not only do you not get the depreciation tax break,
you don’t make any passive income, but you’re also paying money each and every
year just to own your land. Every year your local government is going to send you
a friendly letter in the mail that says something like, “I owe six thousand
dollars?” Every year you have to pay property taxes, and you have to maintain
your land by cutting the grass and doing whatever you got to do so you always
have money going out, while you have no money coming in, because you’re hoping
for one big speculation. The worst part is, you’re going to have money leaving you
for a very long time, because five: No one is buying land. If you buy one share
of Amazon stock, you can sell it in a matter of seconds because there are
millions of people buying and selling stocks each and every day. If you’re
trying to sell a house, now it might take you a month or two, but you constantly
have people coming in and out to see it. But if you’re trying to sell land, you
could be waiting years before you get a decent offer. There is a smaller volume
of investors looking to buy raw land, and if you bought your property with the
hope that investments and developers move your area and the card flipped the
wrong way, now you’re going to be holding on to your
land for a long, long, long, time. No, come back. So now you got to keep paying
your taxes and pay to maintain your property until somebody can buy it,
unless six: You develop your land. If you own land, and then you build a big hotel on
it, well, what’s the big deal then Jaspreet? You’re right, because if you
build something on land, you are no longer a land investor, you are a
real-estate developer, and that is completely different. Now you get
your tax breaks, and you make your passive income, because your goal is to
make money every single month, or you’re improving your land, this way people
want to buy it for a huge profit. That’s not land investing, that’s developing, and
developing I’m completely cool with. Land investing, not so much. And number seven:
Land investing is such a boring game. When you invest in land, you are playing
a waiting game. [humming] Oh sorry, I was waiting again. Cities take time to
develop, and you could be waiting years or decades before your land is worth
something where you can finally sell it for the profit that you were hoping for.
I knew this land would be a great investment, I told you to listen to me, and it
only took [coughing] 62 years. What’s the fun in that? When you can be a part of the
action and get paid each and every month to be a part of the action instead of
waiting, and waiting, and waiting. Now, I want to hear your thoughts on land investing,
is it good or bad? Why or why not? Let me know in the comments below. Thank
you for watching, if you enjoyed this video, share it with one friend, and if you
don’t want to miss our new videos on entrepreneurship, business, and money,
every Monday, Wednesday, and Friday, then hit that subscribe button below, and the
little notification bell, that way YouTube actually lets you know when new videos
are released, and as always KEEP HUSTLIN’ *

100 thoughts on “I NEVER Invest In Land Even Though I Love Real Estate – Here’s Why

  1. Thank you for watching! If you enjoyed this video, you should watch – How I'm Investing My Money In Today's Economy: https://youtu.be/KfdYVBJZKCE

  2. Love your videos as always ! 🙂 kinda find that you’re walking towards the camera a little too much, but that’s just an opinion. Keep killing it

  3. HERE IN CENTRAL FLORIDA, people have made MILLION$ on land speculating – with a "twist". They buy "raw" undeveloped land, clear it via bulldozing & burning the debris, and then PLANT PINE TREES. The State of Florida – Forestry Division will even plant the trees for FREE – but you have to give them a share of the income when you sell the trees for pulp or lumber. THAT WAY, they actually have PASSIVE INCOME – albeit, it takes about 10 years to grow harvestable trees ! (Later on, they hope to sell the land to residential & commercial developers – so they WIN both ways !)

  4. Build a tiny home community on your small lot, let all the hippies have drum circles in exchange for good vibes and heady jewelry. Boom. Profit.

  5. You didn't really talk about income-producing land, such as farm land or land that grows timber. I'd like to hear your thoughts on those.

  6. I started off my real estate buying bare land. I buy real estate for appreciation not cash flow so that’s why. Thanks J

  7. Good insights. My only thoughts are, why does buying land work for McDonald's? I assume their business model is an exception to this rule.

  8. However it’s easy to set up a simple business on your land even without building anything and you can also lease the land…. actually I’m going to stop talking …. your right MM tell everyone not to invest in land…… 🙊 🤗

  9. This is dumb. You buy the land to built on it. The speculation part is only for the people who are predicting the local development plans that also involve building. Real-estate owners pay the land-owners and usually with a premium. The real-estate tax rate of the built land is reduced, unless you live in a Democratic Party ruled state or city such as Detroit with excessive real-estate taxing. Even in the high taxation zones, the landowners are not paying it unlike the tenants. This proves that having wealth does not always make you a smart (or honest) financial player.

  10. My father bought a 5 acre lot. And we turned it to a 18 wheeler parking lot. 100 spots for $100 for spot per month. Good thing about that is I don’t have to worry about maintaining anything other than covering holes and fixing the fence. The only bad thing is that banks don’t loan money for that.

  11. I have 37 country acres mostly woods and downhill. The only thing that I can think of using it for is letting family and friends go deer hunting on it. What else do you guys think I can do with it?

  12. Good video, as usual, but you can cut the trees down and make money from the property while waiting to see if anybody will buy it. You made good points.

  13. Unless you have been exposed to the market of harvesting timber you wouldn’t be too familiar with the concept. Land is great if you know what you are looking at. The reason you don’t get depreciation is probably because the trees grow every year (supposedly) so the government looks at it as you are holding natural resources and not utilizing it. If you get into the timber harvesting market you can use the income from the harvest to pay for taxes for a while until you are ready to sell it or do the final harvest for the most one lump sum income. Also farming the land gives you tax breaks and that could be as simple as having a designated amount of livestock per acre etc. same concept, if you are not utilizing it you get penalized, but if you are working the land you get the benefits of the tax credits or cuts.

  14. You are absolutely right!
    I should have listened to my wife and not bought a 5-acre piece of land, but I'm hard-headed and I bought it anyway. I purchased it for $32,000. Held onto it for 15 years and paid financing fees, taxes and other expenses at a cost of about $50,000 total. I sold it a few months ago for the best offer I could get of $9,000. Deduct the taxes from last year and this year and the real estate fees, I walked away with a little over $4,000😢
    Huge lesson learned!!!

  15. Land Patent. Yes it real and it really works I've done for several people in SoCal, I'm still doing it. Land is a great investment when done right. …a land patent can eliminate your mortgage completely. If you think I'm joking try to get a loan of any type with a land patent. The banks cant take it from you.

  16. This could be so different around the world. What if you invest in land for the purpose of farming? Or as a long term investment as in for future developing areas?

  17. Land investing brings really good returns if you know the direction of development or progress ( watch classic film Blazing Saddles!).

  18. Great video but you are moving too fast. You are speaking to fast. Thanks for the info!!! I did sub! But please slow down a bit so we can hear you (and catch your jokes). Oprah said get a piece of land. I want to buy to build my house. I want land to build my church.

  19. It depends. If you buy land to farm it may be a good investment. Another place to buy land today is the SW desert. Cheap No water but a lot of sunshine. Ideal for solar panels. Even buying "land" with abandon neighborhoods may be a good investment. Think of the Bronx. It was redeveloped. The advantage is that the infrastructure was already in place.

  20. Great video. Very informative.
    I understand all of your viewpoints. I also understand that you want a constant cash flow.
    But isn't land a finite commodity?
    The lower the supply of land, the higher the cost.

  21. With balooning population land is gold or titanium for me …i love large spaces i can put anything or grow anything with no limit. I love agriculture and doing business . Land is an eternal asset your children and granchildren will surely love.

  22. I can give you about 72 reasons why you would invest in land and you’d be mad not to do so. I also own quite a chunk of real estate. Block of ocean side land I bought for 98k 2 years ago now worth 170-180. Was a mortgagee sale, highest capital growth I have on all my properties on a percentage basis right now over the two years.

  23. Benefits of owning land:
    1) Rent to Farmers
    2) Clear brush and sell wood
    3) Own fishing rights of pond
    4) Rent to billboard businesses
    5) Start a camp ground
    6) Government pays you to NOT cut trees
    7) Possible mineral/ground water rights

  24. I know a family that became multi-millionaires overnight due to selling land. They used to be mere peasants, but they did well and bought land a little with every generation and in the meantime, the cities spread out and started merging with their land in between…

  25. I love land and own multiple properties, but he is right. It is not an immediate boon. And it is definitely not a passive income. I use land for personal reasons. It is the least expensive way to become a home owner. Like the area but don't have the money to buy a home there? Search for land, pay it off, then use it as collateral to build on it. It takes more time but you potentially can save hundreds of thousands. And if the lot or parcel is in an up and coming area then that is just a bonus. Just do your research. Make sure the land is able and permitted to do what you want with it.

  26. Doesn't make sense owning land if you're not intending to do anything productive on it. Just bought land but it's gonna have an apartment building with 10-12 apartments within 6months

  27. 10+ years ago a women wanted to sell a land to my parents for 2mil, they're turn down, now she don't want to sell it for 20million, she lets a few business rented her property getting good passive income.

  28. Buying real land means you don’t pay taxes on it because you OWN it. You only pay taxes on things you don’t own. It’s a common law issue (supreme court) and most people think to use fiat currency to buy land which is impossible in the first place. He’s teaching the resident/residue game which means temporary or not permanent, and this has been the crux of this country for the last 150 years since the civil war. But for most people I don’t think they will fully understand the importance of land and those across the water who you pay your taxes to appreciate it dearly.

  29. Jaspreet, I agree with you usually, but Properly researched land can be a very good investment, it doesn’t always take 60 years to see a return, I’ve seen property triple in the past ten years in some areas.

  30. If your a millennial Forget land and expensive real estate. Look into Virtual land like Cryptovoxels, Sandbox or Decentraland. Blockchain allows you to have full ownership of these Virtual lands in the form of an NFT (Non-fungible token). Seriously, try on a VR headset like the oculus quest and you’ll see why this is the Future.

  31. Can we talk about how not every damn piece of land needs to have a house or hotel or business on it? I'm going to be buying land just so all these jackasses don't cut down every tree there is to make a quick buck.

  32. The only way I would buy land is if I could rent it to a farmer and collect some money on it. So that it’s either a small positive cash flow or break even kind of deal.

  33. Dream goal:
    1.) Buy land
    2) Farm land
    3) Hunt land when deer come in. Grow the population.
    4) Build house/cabin on land
    5) Place property in a trust for when I die.
    6) Arrange so house/property will be used as a rental/vacation home and create passive income from farmland/renters.
    7.) House/property never leaves family ownership.

  34. I can also find videos where people are saying don’t but gold and videos where people say now isn’t the good time to buy real estate ….at this point idk why I clicked on this video

  35. I've always wanted to own a tiny airstrip or airfield. But I don't even know if those make any money at all a side from the gasoline refill services. Probably tons of bureaucracy involved, too.

  36. I’ve got my 40 acres and I don’t regret buying it. Gonna build a shipping container home and use it as a weekend getaway. I’ll give it to the kids when I’m gone. Speculative or not. Land in a good area is a great investment.

  37. Although I agree with a lot of these things, I have to say some times I purchase land just to have it. It's only so much land the world has, Once you run out then that's it. So I purchase a lot at good prices.. I've been lucky enough that the city purchased land from me because it was a good location for a walking trail or park. Other than that having multiple amounts of land that I can use for person reasons is awesome enough. Especially the ones that are not restricted

  38. Buying land can be a money maker that is say you got 10 acres and a farmer needs land to plant corn so you rent the land out to help the farmer out

  39. Makes sense. So. How do I buy my first Rental property? I have a mortgage and some cc debt. Can I get a loan for a rental property?

  40. It's not very liquid, nope. But it might be harder to steal than other assets. You can sit on your land with a gun and die protecting it where the other assets could easily get stolen 😎

  41. Jaspreet was a little TOO hype this video… You okay there Jaspreet? Great video on land tho. I never saw it in those terms. It's kind of like a crap shoot or gambling while waiting for a pay off.

  42. Might consider TIMBER land because of the passive income it produces. It sits there. It matures every 15-17 years. For every 100 acres you can generally collect around $60k (depending only the types of trees). If you own fifteen 100 acre plots, that’s $60k annually roughly every year. Forever. To be passed to your heirs. Forever. They put the money into MORE timber land and make more money every year. Taxes are minimal. Return is great. Just sayin.

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