Lets say you've got the cash sitting in the bank to buy a desirable lake front lot that is 1/2 acre, and costs around $80K - $100k.
What are the odds on this property making you a big profit in the next 5-10 years?
Properties in question are on Greers Fairy Lake in Arkansas, a nice recreational lake.
Note, while I don't have the money to buy the $250K + homes on the lake, I have the money for an empty lot as an investment.
Bad idea?

Lake Norman lots sold for 7k each in the 80s.  Now they sell for 150k-3m.

Traditionally land is a money maker, the more rare or in demand in the future the more so.

The problem you run into is if they lake has an issue and say drains then you will be at a loss.

I would treat it as any other investment, do your research (as you are) and put whatever percentage of your income that you normally put into investments into that investment.

If it is your entire savings, could you make money someday? Yes most likely. Could something happen that you lose it all? Yea

You might also be exposed to changing permitted use laws and environmentalism. Say it's just land with no foundation or "footprint" and no well, then the enviros get their way and ban any future permits for such. Then your investment is worth next to nothing. That would be my biggest fear buying waterfront land only, that and the lake having drought issues and shrinking dramatically.

I own lakefront on two different lakes. The value swings widely from year to year, depending on the economy.

When people have money, they line up to buy lakefront vacation homes and prices skyrocket.

When people go broke, they can't get rid of their lakefront vacation homes fast enough and prices plummet.

Can you get Utilities to the Lot?  If not it's not worth much.

On the plus side, if the lake shrinks dramatically, I suppose you get free land out of it.

Have to agree with this guy

I have a friend who bought a crumbling house on a lake for $200k. It was her intention to fix it and flip. Well one day the roof collapsed and she did not have any desire to continue. She sold the house and land for $450k. She was elated. The new owners leveled the house and built a monster mansion.

She took the $450k and bought a huge piece of land on a lake thinking she could flip the land. Well all sorts of laws and restrictions and environmental regulations resulted in her piece of land being restricted to just a small 1000 sq ft house instead of the giant 5000 sq ft palace she had imagined a future builder might want to build.

Her land is no longer worth $450k, although it's still worth about half.

Purchased a lake lot in 2000 for 30k now worth 130k. Thinking of building a cabin now though

How much do desirable (in the present, maybe not in the future) __________ appreciate?

Who fucking knows. Anything else is speculation.

That's fine as long as you understand that you are speculating and it may be worth nothing or very little one day. Typically land appreciates. Sometimes it's doesn't, eats your soul, consumes your children's college fund, and bankrupts your family.

Also keep in mind, the time value of your money, and carrying cost. Buy an empty lot for 50k, in 15 years you may very well spend 50k in taxes and upkeep depending on the area.

Just things to think about.

When I worked for the gas company we did dozens of lake homes on 3 different lakes and the price fluctuations interested me so here are a few things I noticed.  It better be water front not close to the water.   In high times location isn't a killer but when the economy isn't booming you can't sell if it's located poorly. Make sure it has something more than just a water front spot like paved road access or the close side of the lake to town or next to the golf course or on a bend  inThe lake so you have a better view Ect.   If it's an investment go look over the areas you are interested in house by house but wait until the next market crash.  We had a customer make over 100k in 2 months because he bought in a downturn and when the market shifted he dumped it.  This same customer did the buy sell 3 times that I know of but I don't know the numbers for the other houses, he was a customer for 15+ years.  A lake house can be strange as long as it doesn't get in the way of function the buyer wants: steep back yard and you won't sell to a party couple unless it has a large deck, if you can build a dock you better have one even if it's a small float, strange utility arrangements like off grid might not kill you as long as you aren't the one doing the initial install.  Oh and people would buy crap and be happy about it as long as the front of the house and back to the lake looked good.  It's like the inside of the house was just a detail.

Pay attention to the taxes.  Lake front property is usually taxed on lake frontage linear feet.  And it usually makes normal property tax look like pocket change.

I know that lake well after managing a city on Greers Ferry for 5 years. Several issues come into play; do you have a dock or prior approval for one from the Corps? No dock approvals coming out of their office for a long time. What city are you in or near?

There is a finite supply of desirable ocean, lake and river front land, meaning it will appreciate in value.

With that said, vacation properties are one the first items most families dump in a recession.

So when times are good lake front land will sky rocket in value, but when the stock market takes a dump don't be shocked to watch the value of your lot/house drop in half in a matter of months.

remember land has a low liquidity, it can take time to sell it

you can lose money on land and houses just like the stock market

if you can park $100K for long time and forget about it, go for it,  if you are going to need that money real quick i wouldnt invest in land

Thinking of looking more into the Shirley area.
Prefer to stay away from Fairfield Bay, as I here they have extra taxes and fees to live there.

this plus the less lake fronts available the better.

Lake front owner, Sam Rayburn Texas

In my experience lakefront property values are all over the place year to year.  I wouldn't buy the property itself for an investment.  If you can make money renting it then go that route.

You're right. However, they also have amenities not found nearby plus C&R's to help keep property values. If the land is in FFB and is unimproved, the fees are really low and worth it imo. Have you spent any time in Shirley and/or Clinton? Some really good people there but with the lack of employment, drugs and ozark work ethic, I'd stay away.

And yes, I am qualified to make that statement; I have lots of 'kin' from that area and with my bloodline, I'm two bad decisions from living in a beat up trailer in some 'holler' there in Van Buren County.....or in prison.....or dead.

If I was dead set on GF Lake, I'd look more towards Heber Springs. If I didn't have to work, it would be Lake Norfork.

Yes, raised in the area, but that was over 20 years ago.
I don't think the meth was there at that time.
The factories shutting down really hurt the area, other than the land owners that got the gas well money.
There seems to be some really nice areas compared to when I lived there, but there also seems to be more and more areas that remind me of pics I've seen of West Virginia, too.
Looks like a place a man could go missing if the wrong people were crossed.
Still, the lake area looks fairly safe.

What about buy empty lot and rent it out to campers? To cover taxes. Not sure of the area if that would work or not just an idea that crossed my mind.