Educate me about buying undeveloped parcels (In SoCal)

[Brando]

So things may be coming to a close relatively soon in regards to a recent incident which results in some slight financial gain. The abandoned places exploration thread got me looking... Abandoned properties and even undeveloped.

So, what all does it entail in buying an undeveloped plot? I see some listed in CA anywhere from $8000 to $1,100,00 (and up). If I were to pick up an undeveloped parcel, is it going to cost me much more in the long run or is it something even worth doing? I've heard (rumor) of subsidies and tax write offs if the land can't be developed... But essentially I'd like a piece I could one day build as my own.

Suggestions? Ideas? Input? Encouragement? Discouragement?

As my dad says: "Land is the only thing they don't make more of."

[Danny_Ocean]

Old rule of thumb...if you aren't going to develop a parcel within 6 months, don't buy it. Depending on the surroundings/location, holding vacant land long-term is risky. The local governing body can change zoning on a whim and you're stuck with an empty lot to picnic on.

I saw a listing for an ocean-view lot a few years ago in/near Monterey. $80k! What? I called the agent immediately. She told me there were water restrictions in place and the lot could not be developed for 20 yrs. Hmm...OK. That coincides with my retirement. What happens in 20 yrs., I ask...can I build then? No, she says...the water district has the right to extend the restriction for another 20 yrs.

On the other hand, I've been looking at land adjacent to an airport in a fast growing city. Nothing but empty fields as far as you can see. 20ac. parcels in the $200k range. They just lengthened the runway to accomodate passenger jets. I can imagine Avis, Hertz and National will need a lot to park their cars someday...

[McLovin]

It's true that land is something they don't make more of, but it's also true that there is far more land than we will ever need in our lifetime, our children's lifetime and several more lifetimes.

For example, you're in California. Drive up the I5 from LA to SF and you'll see hundreds of uninterrupted miles of land that will never be developed, not in our lifetime, probably never. As undeveloped land, I can't see how it has any value. It produces no income, and never will.

So, it really depends on the specific piece you are looking at, location location location. And price. I think you need to have a very specific, realistic plan for the land, what you can realistically do with it, how much it will cost, what it would be worth finished (either to sell or use, etc.).

[Brando]

Ideally in the next 5 years I would like a parcel somewhere close to civilization (Orange County, reasonable commute to wherever I may work). Maybe drop a manufactured home on the lot and a 4-car shop. Utils run, of course.

[sammyg2]

A guy I worked with back in the mid-80's was gobbling up useless desert land at $2000 for 5 acres. He woulds buy another 5 acres every summer when he got his vacation check (union millwright, complicated). He suggested I get into it too. I laughed at him, wasting his money on rocks and dirt and tumbleweeds.

Turns out that useless desert is now squarely inside the town of Victorville and completely developed into subdivisions. My friend? Retired long ago and doesn't have to worry about money anymore.

Kind of a risky gamble if you ask me but at least one guy made it work.

Seems that buying up a carefully selected repo house would have a safer upside potential.

[Zeke]

Originally Posted by McLovin

For example, you're in California. Drive up the I5 from LA to SF and you'll see hundreds of uninterrupted miles of land that will never be developed, not in our lifetime, probably never. As undeveloped land, I can't see how it has any value. It produces no income, and never will.

I know of much of the land of which you speak. Flying to San Jose got me a great bird's eye view of the whole length of the central coastal range.

There are some private ranches, but I think it's mostly state owned. There are enough firebreaks and service roads (mostly dirt) that one can explore, but I've never done that because I'd hate to get stranded out there.

But, you'd be surprised doing a fly over with Google Maps of the outposts.

[looneybin]

there were plans to build a race complex on I-5 somewhere near Kettleman City, but i think it has since fizzled out

[RoninLB]

La Quinta still has some empty lots that aren't expensive