Carlsbad-Land

Comments on Carlsbad Land Sales in 2011

Well another year is behind us and I know most of us are looking forward to a brand new year and fresh start in 2012. The year started out with signs of economic improvement, but quickly gave way to a landslide of worry in late summer thanks to Congress’ failure to act and the European debt concerns.

The number of land and lot sales in Carlsbad, California were down over last year. In fact, they have been slowing over the last few years from 10 in 2009, 8 in 2010 and only 3 so far in 2011. With less than a third of the lot sales from 2009, the number of sales in 2011 was disappointing and probably the result of the ongoing economic uncertainty. If you are looking to buy a lot or some land, now is the time while prices are low and you have an adequate supply of opportunities.

If you own land, you may be wondering when is the right time to sell and get back to cash or maybe even sell and create a nice steady stream of monthly income to help offset some bills. I would say that if either of these ideas interest you, give me a call or request a land valuation so you can see what the value of your land or lot might be. I specialize in vacant lots and land only and will work hard to get you the best price and terms.

I am grateful for many things in 2011 and wish all of you a healthy and prosperous 2012!

Buy Land as an Investment

Many real estate investors limit their investments to buying houses. But, they should consider investment diversification into land. Buying and holding lots and land for future sale is referred to as Land Banking. The investor’s objective is to buy and hold the land for an extended period of time to capture the appreciation that occurs.

The advantages of land banking are that it appreciates faster and it doesn’t require the headaches and maintenance of holding houses. The disadvantage of owning vacant lots and land is that it does not usually produce any income during the holding period. But, be creative and maybe you can generate some income from your vacant land by leasing it for farming, storage, etc.

When searching to buy land, for this type of investment strategy, you should consider the 3 most  important factors; Location, Utilities and Usability.

1. Location – Stay close to town or buy lots in a city that is nearly built out.
2. Utilities – Electric, water, roads and other utilities should be easily available nearby.
3. Usability - The land or lots should be level and well suited for its future use.

Carlsbad, Encinitas and most of North County San Diego are perfect places to buy and hold lots and land because as Mark Twain told us, “Buy land, they aren’t making any more of it”. So with the local scarcity of supply, the demand from the county’s large population and employment base, and today’s low prices, it is a perfect time begin adding land to your investment portfolio.

To see all of the Carlsbad California lots and land for sale, click here.

Land Sales on the Rise

While the existing home sales market is beginning to show signs of life, vacant land sales are starting to boom. The truth is, land has been the key all along. Even when home prices were leapfrogging their way to the stratosphere, it wasn’t the structures that were increasing in value, it was the lots and land those structures sat on. Why land? The old saying is true: Land is valuable because they aren’t making any more of it.

Builders are back up on the horses that threw them and have began buying land again. With land prices low, competition for vacant lots and land has increased and now land prices have started going up. From a builder’s perspective, the future is looking bright and now is the time to invest. In parts of Southern California, where prices were hit hard, some construction-ready lots are up in price by as much as 50% from their 2009 lows, according to a Bloomberg analysis.