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| yes buying something with a negative return is bad business. There is no incentive to buy something just to lose money on! However, tons of ground is bought everyday that won't cashflow- yet for the most part, you don't see that ground coming back up for auction.
People use existing assets to carry the new ground until they pay it off and by then everything has appreciated and is now worth more if they were to sell it and all is good. If you are dead set on farming more ground and making less money in the next 20 years then by all means take a look at it but also consider the opportunity cost of the money that will be required to carry that new ground. You could be investing or using it to fund other things that may have a better return. | |
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Selling stock and buying land
