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
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actually lets you know when new videos are released, and as always KEEP HUSTLIN' *