Buying land, does it give a better return than a savings account?

[PommyPaul]

Sooooooo.... at the moment i get 0.4% per month on my savings and pay $100-200 a week into it. (i haven't actually got much in there, sub 10k$)

 

But i've been thinking instead i might get a mortgage on a 3 acre plot of land just north of Gympie Qlds, land is $85000 repayment is about $120 per week.

Then over time i can clear the land alittle, fence it, build a driveway, build a lockup/workshop and eventually build a house on it as time and money allows. I should beable to do this whilst keeping renting and having the same lifestyle as all i'm doing is putting the money i'd usually save somewhere else.

 

whats peoples views?

[paulhug]

Sooooooo.... at the moment i get 4% per month on my savings and pay $100-200 a week into it. (i haven't actually got much in there, sub 10k$)

 

But i've been thinking instead i might get a mortgage on a 3 acre plot of land just north of Gympie Qlds, land is $85000 repayment is about $120 per week.

Then over time i can clear the land alittle, fence it, build a driveway, build a lockup/workshop and eventually build a house on it as time and money allows. I should beable to do this whilst keeping renting and having the same lifestyle as all i'm doing is putting the money i'd usually save somewhere else.

 

whats peoples views?

 

Paul, that is assuming you'll get approval for it. You would be better buying a smaller block in an area that is being built up. Pay like $300k, keep it for 12 months and sell it for $340k, makes sense rather buying in the middle of nowhere were you have a limited market.

[Mongrel]

Still have to pay rates on it ,daft i know

[PommyPaul]

Cheers Paul! i see the sense in that but sadly i don't have a 10% deposit to cover 300k...