Too Young to Invest?

An acquaintance of mine is selling plots of land a few hours from Cancun, about 15 miles inland from the Mayan ruins of Tulum.

It’s cheap (about $12,000 USD total), the monthly payments are pretty easy, and the properties are big at 2.5 acres.

Negatives: It’s out in the middle of nowhere. I doubt there are any utilities out there at the moment, although who knows in a few years.

The city of Tulum is working on getting approval to build an international airport in the next few years, which could make this an amazing investment.

I dunno. This would be a much easier decision if we had more money.

What would we do with it? Hmmm, nothing right now. In a few years, either build on it or sell.

Anyway, just an idea to toy around with. It would be really cool, but is investing a priority at 24 years old?

18 thoughts on “Too Young to Invest?

  1. Its always a good time to invest, specially if you’re building towards your future. I wish I had more money to get some good ideas up and running! šŸ™‚

  2. Um, did I ever tell you I spent ten years giving people financial advice? Former life.

    The best bet with investing is to think long term. If you can hold on to it for 10 years then you are golden. Also, don’t do anything that is going to tamper with your ability to handle financial emergencies, cuz they are a fact of life. In other words, make sure you have some breathing room.

  3. It could be cool, but I would do some thinking and research first. Could you put away that much money a month in a savings for down payment on a house? Are you definitely going to be in mexico until the land appreciates? Talk to a real estate agent in the area who knows about the market for sure! Find out about the utilities…remember that you have to be able to find a buyer later if you decide to sell. You don’t want to be stuck with land you can’t unload. But you are never too young to start building equity if you can.

  4. I think that you spent too much time in Vegas. There are just too many down-sides to the investment – too many things that may or may not take place in order for this not to be a significant loss. And you have no control whether or not those things will take place – airport, water, employment opportunities, etc.. There is a good chance that you would not even be able to get your money back in 2, 5, 10 years. The reality is that it could actually be worth less in 2, 5, or 10 years. That being said, I am sure that there are really awesome investments surrounding Cancun, but you do need to always weigh the risks. Money is just too hard to come by. Here is the best advice I have ever had. Always spend less than you make; invest at least 10% of each paycheck in some sort of savings; give at least 10% to God. My advice about money – always ask your Mom.

  5. 1. You’re never too young
    2. Real estate is tricky, anywhere in the world
    3. One day at a time – you’re recently married, it wouldn’t hurt to save up for a home first, then additional properties later on…

    Being that the land is as you described – if you do decide to buy: I would try to negotiate the price a bit, and research. What if the approval for the airport doesn’t come through? That definitely means no utilities, additional roads, housing,*people*, etc.

    We recently tried to buy a plot of vacant land within my husbands hometown city limits. Once the owners caught wind that we were american, they raised the price by 50%. We walked away, and they have nothing now – just for being greedy.

  6. one more thing…if you are set on building some equity by investing and have the money to invest in something, then i would invest in property you could live in. that way, in addition to building equity in a house, you are stopping the process of throwing rent money away each month. and there arent so many guessing games with a home as there are with vacant land in an area without utilities or people.

  7. My first thought? Know it’s right IN THE DEEPEST PART OF YOUR GUT before you buy it. My second thought? Run the numbers and then run them again. What would build-out cost? What would utility installation cost? What are taxes?

  8. do it if you can afford it! Property (at least in the states) always goes up in value. If the area has potential to blow up soon or anytime… that land could be worth way more than you paid for it…

  9. Listen to DAD! It is never to early to invest, but start saving money b4 you consider investing in a property that may never be worth much!

  10. Investment is definitely not a priority at your age and yet, it if you feel it’s lucrative choice, you have the money and you foresee revenue, it can’t hurt. I know people in their mid 20’s who are already investing in condos and real estate. At least you’re asking yourself those questions and starting to look towards the future. That’s a great start!

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